Nayib Bukele’s punchlines – What should a country expect that ignores warnings from international financial institutions, and chooses to adopt bitcoin (BTC) as legal tender? One of the answers to this question is that the leaders of this country will need to have some sense of repartee, even catchphrase, and expect to wage a communication war on social media.
Bitcoin in El Salvador: the spark that will explode the powder keg of fiat currencies?
The institutions which try at all costs to protect the supremacy of fiat currencies, have found in the communication ring, an opponent to their size in the person of Salvadoran President Nayib Bukele.
n recall, the International Monetary Fund criticized the country’s decision to adopt bitcoin in June 2021, but that did not prevent El Salvador from making the latter legal tender. Bank of England Governor Andrew Bailey also voiced concerns to students at Cambridge University over the legalization of bitcoin in El Salvador.
Faced with these attacks on his country, the president of El Salvador does not mince his words anymore. On December 23, 2021, Bukele thus indicated in a tweet that “What international organizations have called” the Bitcoin experiment “is nothing other than the world watching how mass adoption is changing a country’s economy “.
The Salvadoran president also underlined that his country will be historically considered as ” the spark that ignites the real revolution After fiat currency has lost to the dominance of bitcoin.
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Bitcoin and the governance of a country: do we really know where we are going?
To its credit, El Salvador used the bitcoin profits from its Bitcoin Trust to finance the construction of 20 schools. Bukele announced in October 2021 that $ 4 million from the Bitcoin Trust would also be used to build a new veterinary hospital in El Salvador.
Bitcoin therefore allows a country like El Salvador to finance social projects. But while the President of El Salvador does not budge on the merits of his administration’s decision to make bitcoin legal tender, hasis he necessarily right to have taken this path ?
Unlike fiat currencies, bitcoin is a currency deflationary, whose issuance mechanisms are governed by strict rules, accompanied by other provisions which define, for example, its maximum offer.
These rules cannot be changed by anyone. As such, Bitcoin is a currency which value is based on trust, its predictability, and its increasing scarcity. As for fiat currencies, they are subject to inflation, and their holders cannot, in fact, prevent the improper use of the printing press.
If these technical and organizational arguments plead in favor of bitcoin, no one knows for the moment precisely, all the implications long-term adoption of bitcoin as legal tender by a country. International institutions defending the traditional monetary system tremble at the “Bitcoin experiment” – otherwise they would just ignore it. But it will take let time do its work, before being able to really draw lessons from this “experiment”.
Nayib Bukele responds ardently to international organizations trying to block the adoption of bitcoin in the country. Either way, El Salvador today is a BTC whale. The government is taking advantage of the cuts to increase the country’s bitcoin stock at lower prices.
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