The declaration of Bitcoin as El Salvador’s legal currency under the leadership of El Salvador’s progressive President Nayib Bukele. This was a sensational launch that pushed the law to declare Bitcoin the first legal tender, or Legal Tender, on June 6, 2021, after which the government of El Salvador gradually bought Bitcoin into the system. The latest data, El Salvador currently has a total of 2,301 BTC holdings in Bitcoin.
From Stock2morrow’s point of view, this illustrates the other side of the risks of bitcoin as a national currency. It has been trying to support Bitcoin and push law enforcement to the extreme. by raising the policy to lead El Salvador to become “Bitcoin City” at that time Bitcoin is up Everything looks good Until I forget to look at the picture and say that if it can go up, it can also fall!!!
What if Bitcoin is down? What will happen to El Salvador?
According to research by The Central American University, a survey of 1,270 El Salvadorans, most of whom thought “It’s useless” The people who commented in the survey were divided into
71% of the population consider the Bitcoin Law It did not benefit them at all.
12.8% of the population consider the Bitcoin Law not much benefit to them.
6.1% of the population think the Bitcoin law is helpful. and is very useful to them
About 3.9% of people commented that the Bitcoin law and government investment in bitcoin-related businesses It will become one of the biggest failures of the Nayib Bukele government.
While it seems that most of the people of Salvador will not be satisfied with Mr Nayib Bukele, because after the law has been promulgated It seems that instead of taking advantage of “Bitcoin stream” used to develop the country and solve the problems of the people pushing for various policies that are important to the economy As the propaganda sprayed earlier, It wasn’t as promised. Instead, they use the country’s money to buy more and more bitcoins. continually On the other hand, the country’s economic downturn that can’t open its eyes at all, while the country’s public debt is growing unstoppable. At the same time, Mr. Nayib Bukele himself continued to believe. Bitcoin is not shaken Despite the warnings from the IMF and even the World Bank
However, the research also raises doubts that Part of the dissatisfaction is likely due to negligence in investing. until forgetting to consider the unseen risks that may arise in the future After the price of Bitcoin fell heavily. The question that people leave to the government is “Loss incurred What will the government do next?”
In view of the damage caused by the risk of entering the government’s investment Consistent with research from www.nber.org, the country is “fail” from the use of bitcoins Because most people do not interact with Bitcoin at all, including the ecosystem that the government is trying to create. Whether it’s a Chivo app wallet or a Chivo ATM installed across the country. In fact, people who have access to less than 10% of the total population of the country. which caused the following doubts that What hidden implications does Nayib Bukele’s attempt to push back against the legal use of bitcoins? Contributing benefits to certain capital groups through complex benefits Which is difficult to verify?
Meanwhile, the major Middle Eastern media outlet Al Jazeera reported that President Nayib Bukele has gone to great lengths to create a Bitcoin urban climate, including enacting legislation, building ATMs for Bitcoin, and trying to get local merchants to accept Bitcoin instead of the nation’s paper money.
But on the other hand, what is worrying is that the country’s debt is above 50% of GDP and continues to tend to rise. make a small country El Salvador tried to borrow up to $1.3 billion from the IMF, but the IMF rejected it because it felt uneasy about El Salvador trying to get money into the country. Instead, it will lead the country to place its hopes on becoming a Bitcoin City instead, which reflects these concerns. They think that if Bitcoin continues to fluctuate continuously The country is inundated with debt and the economic crisis in the country is deteriorating. In addition, the world’s largest financial institutions close the door for loans El Salvador’s exit Where will you turn? Because of the reflection of the multiverse parallel world El Salvador projected into a picture of Venezuela from the past. began to appear more clearly