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Is Nayib Bukele Using Bitcoin To Create Illusion In El Salvador?


www.thecoinrepublic.com 04 July 2022 16:00, UTC
Reading time: ~2 m

  • El Salvador became the very first nation to make the crowned asset Bitcoin a legal tender back in September 2021.
  • Nayib Bukele, the young president of the nation is among the greatest enthusiasts of Bitcoin all over the globe.
  • As of this writing, Bitcoin was trading at a market value of $19,435.27, uptrending by 1.79% during the past 24 hours.

Nayib Bukele’s Admiration Towards Bitcoin

Bitcoin, the first ever cryptocurrency rolled out by the shadowy figure Satoshi Nakamoto, is still the most popular crypto asset to this date. The motive of the crowned asset was to eliminate the inclusion of the state with money, and to make it a peer to peer network.

El Salvador became the initial nation to make an announcement previous year that they will be adopting Bitcoin as the legal tender. The decision was cherished by the international Bitcoin community.

Nayib Bukele has utilized Bitcoin to eliminate the authoritarianism of his government on a global level.

When Nayib Bukele adopted Bitcoin, the economy of the nation was already stretched. The country was in debt which was equal to 90 percent of the GDP.

Credit agencies got skeptical regarding the debt sustainability of the nation. The government of nayib Bukele was seeking monetary agreement with the IMF for $1.3 Billion.

When Bitcoin became the legal tender in El Salvador, the president assured the citizens of the nation that it will increase monetary inclusion, lure foreign investment and tourism, and lower the fees on remittances.

Back in November 2021, Nayib Bukele made a plan to sell the “bitcoin backed bonds,” a latest, untested system that he thought could be an alternative way to finance the nation without the inclusion of organizations such as the International Monetary Fund.

In the end, anyone who has stepped into the nation, and have visited the places excluding the beaches of the country can easily say that the president of the country, Nayib Bukele, is not building a utopian future for the country.

The question arises here that, if Bitcoin is actually being used for the purpose that Nayib Bukele promised?

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