El Salvador, a small Central American country, is poised to enact Bitcoin legislation on September 7. Although there have been warnings to the country about the decision by several agencies, the decision still remains solid.
The IMF, World Bank, and a number of other rating organizations slammed the brave move. Steve Hanke, an economist at John Hopkins University, is the most recent addition to the list.
President Nayib Bukele of El Salvador has been chastised by Hanke for continuing with his Bitcoin implementation plan, warning that the President is “playing with fire” and risking the country’s destruction. “, he explained.
“The StateDept sanctioned 14 El Salvadoran govt officials, WorldBank & IMF issued warnings, & ELSL’s bonds tanked. But Pres. Nayib Bukele has ignored these red flags & marches on with his crackpot Bitcoin Law. Bukele is playing with fire. ELSL will be burnt.”
Bukele retweeted the economist’s characterization of him as a “boomer.” President Bukele has received a lot of criticism from both the outside world and within the country.
The country’s opposition party even launched a lawsuit to prevent the implementation of the Bitcoin law, claiming economic imbalance as a reason.
The IMF and World Bank issued warnings mostly about the negative impact of Bitcoin’s volatility on lenders and the financial industry.
President Bukele, on the other hand, has maintained throughout that the Bitcoin Law is not a hoax and was not enacted solely for the sake of the foreign press.
Bukele believes BTC has the potential to fix El Salvador’s banking crisis, which has left more than 70% of the population unbanked.
He also initiated a Bitcoin airdrop program to encourage people to utilize Bitcoin wallets, with each adult citizen receiving $30 in BTC.
The country’s Central Bank recently announced the first draft of a regulatory policy for banks, which includes laws and procedures for dealing with Bitcoin and BTC transactions.
