The president of El Salvador, Nayib Bukele, remains firm in adopting bitcoin (BTC) as legal tender in the country and assured that the decision “is bulletproof”.
The president of the Central American nation made such an assertion in the investor podcast Peter McCormack, What BItcoin did, published on Youtube on June 23, 2021.
Bukele took off his president’s suit to dress like an ordinary citizen. His clothes were a blue jean, black jacket and a white cap. All this, he did following the advice of his wife: “The first lady wanted me to do it, to dress like a human being just like you. I have to get rid of the habit of being president.”
In the more than an hour-long interview, El Salvador’s Head of State said Bitcoin caught his attention when it was worth very little and it had not generated as much interest as it does today. Consider that this process that occurs with cryptocurrency will be larger than it is now. “So I think not only countries but a lot of people are switching to bitcoin because of the problems that exist with the current monetary systems. But bitcoin is so perfect that I think it’s going to be part of the future that is already a present.”
Bukele stressed that El Salvador is the first country to adopt bitcoin as legal tender. Among the benefits that this decision will bring to the citizens of the Central American nation, he mentioned receiving remittances “at the speed of light” and with low-cost transactions, bank people who don’t have bank accounts, attract investment in tourism and be less dependent on the issuance of dollars.
“When a country prints more money, the positive side is that the government has more money to spend. The disadvantage is inflation because more money is being invested without any basis, which makes those dollars worth less.”
Bukele also argued that bitcoin would help address ” monetary problems, “referring to the fact that, by using the US dollar,”we only absorb the cost.” So with cryptocurrency it seeks to “not become independent, but at least become a little less dependent on US dollars and dollar inflation.”
Bukele compared the current bitcoinization with the dollarization that his country experienced in 2001. “The only difference, probably, is the reasons we’re doing this. In 2001 it was probably made for the benefit of the banks, while this decision (bitcoin) was made for the benefit of the people.”
El Salvador considers launching a digital currency
Bukele was then asked why El Salvador did not launch its own digital currency. To which he replied, of course El Salvador could do so because it has the support of Congress to launch this initiative. “But I don’t think that would be innovative or boost finances or help people who receive remittances. If it could be a good measure at the political level.”
Bitcoin is a bulletproof system
Latin America’s youngest president believes that the bitcoin system is something “so perfect that it will be the future.” “For me, it’s bulletproof. I’m sure this will work, not just for us but for humanity, ” he said.
On the banking system’s reaction to the adoption of bitcoin, Bukele considered ” yes, there may be people angry with us. Let’s see how things are here. 70 % of the population does not have a bank account, so some banks may be upset, but they are not taking care of 70 % of our population.”
As for large financial institutions, such as the International Monetary Fund and the Inter-American Development Bank (IDB), Bukele referred to them as powerful institutions from which his country needed help. The same as it had in the past and hopes that it will help them in the future.
The president reiterated his feeling of happiness. He said this initiative to turn bitcoin into legal tender in El Salvador will help humanity. It has also been backed by politicians from Paraguay, Panama, Honduras, Guatemala, Costa Rica, Nigeria and Tanzania.
McCormack asked him, ” Why should people trust him?». Bukele responded that people need not trust the government but bitcoin. In his opinion, the cryptocurrency system is perfect. They need to trust that bitcoin works for Salvadorans.
Your first approaches to bitcoin
The host asked Bukele if he remembered the first time he took a look at bitcoin. He pointed out that at first he read his story and thought it was a very intelligent system, which generated that thousands of ideas will haunt your head, but they faded over time because they weren’t strong enough.
But after several years and see bitcoin grow, not only for its price, but for its system, he convinced him that he is strong because he has withstood the pressure of time and the changing global and political landscape.
He pointed out that all traditional economists have rejected bitcoin. “They don’t want cryptocurrency because they are classics and their ideas are preconceived.” Bukele does not believe that this position of economists has anything against bitcoin, but rather they resist change and try to defend their comfort zone.