The Central American nation became the first in the world to adopt cryptocurrency as legal tender on September 7.
The President of El Salvador, Nayib B Watch, decided to respond to the criticism made by various international organizations after the country decided to adopt bitcoin (BTC) as a legal tender.
On his official Twitter account, Bukele posted: “What international organizations have called ‘the bitcoin experiment’ is nothing more than the world watching how mass adoption changes a country’s economy.”
The Salvadoran president added that, “if it is for the better,” the most famous cryptocurrency in the world will mean that “game over” for fiat money. “El Salvador is the spark that ignites the true revolution,” he stressed..
Bukele’s avatar on social networks: “El Salvador is the spark that ignites the true revolution,” emphasized the president.
Despite protests and warnings from the International Monetary Fund (IMF), on September 7, El Salvador became the first country in the world to adopt BTC as legal tender.
Thanks to this law, the Central American country is located “at the forefront in the use of technologies, as well as economic growth.” Bukele even calculated that if 1% of the US $ 680,000 million circulating through Bitcoin is invested in his country, the nation’s GDP could expand up to 25%.
In this regard, the IMF spokesperson, Gerry Rice, he asserted that this measure “increases the number of macroeconomic, financial and legal problems that require a very careful analysis.”
For its part, Kristalina Georgieva, managing director of the organization, insisted that the authorities’ decision entailed risks that could be seen “with the naked eye.”
One of the most worrying points is the speculative nature of bitcoin, in addition to operating outside of international regulations, which can expose the country to operations such as money laundering or tax fraud.
Several international organizations warn against the use of bitcoin as legal currency
In fact, the Economic Commission for Latin America and the Caribbean (ECLAC) pointed out that its Financial Action Task Force (FATF), which oversees money laundering, put El Salvador in the spotlight.
For these reasons, on November 22, the IMF advised against the broad use of bitcoin as legal tender, arguing that “Its use as legal tender involves significant risks to consumer protection, financial integrity and financial stability.”
A few days later, the Governor of the Bank of England, Andrew Bailey, expressed concern about the decision of the Central American country’s government because it considers that not all Salvadorans “understand the nature and volatility of the currency they own,” according to an article on the site actuality.rt.
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The President of El Salvador responds to criticism of the “bitcoin experiment”: what did he say?