Bukele said that 70% of Salvadoran citizens do not have a bank account. He noted that he does not want to come into conflict with the World Bank as they are free to help them or not.
In recent days, the President of El Salvador, Nayib Bukele, said that he remains adamant about adopting Bitcoin (BTC) as legal tender. The head of State noted that Bitcoin caught his attention when it was worth very little and had not yet generated much interest.
Bukele highlighted that El Salvador is the first country to adopt Bitcoin as legal tender. This decision will help to receive remittances quickly at low cost, bank those who do not have accounts, attract investment for tourism, and depend less on the US dollar.
The Salvadoran president said that the disadvantage of printing more money is inflation as there is a higher investment of money with no basis. He stressed that this situation leads to those US dollars losing their value.
Bukele also believes that Bitcoin would help address monetary problems as the cryptocurrency allows less dependence on the US dollar.
While the dollarization of 2001 sought to benefit banks, the current bitcoinization looks to help people, according to Bukele.
The World Bank Refuses to Provide Technical Assistance to El Salvador
The Ministry of Finance asked the World Bank for assistance with the adoption of Bitcoin, but the multilateral organization declined the request. They argued that the pioneering cryptocurrency contributes to harming the environment and lacks transparency.
The president of El Salvador said that he does not want to come into conflict with the World Bank as they are free to help them or not. He also recalled that the country maintains loan operations focused on health and education with that organization.
Like the World Bank, the International Monetary Fund (IMF), and the Inter-American Development Bank (IDB) are against Bitcoin. They warn that it puts at risk El Salvador’s monetary stability, its comparative advantage due to dollarization, and poses financial and legal risks.
Bukele Says that 70% of the Population Is Unbanked
Bukele said that Article 7 of the Bitcoin Law seeks to protect people and does not discriminate against the unbanked. The head of State explained that 70% of Salvadoran citizens do not have a bank account or a credit card.
The president’s plans include implementing an education program on the use and functions of Bitcoin. Likewise, he seeks to have a government wallet with free Internet for those with low income. “We are not doing it for the government to make money but to fill gaps in the traditional financial system,” said Bukele.
Nayib Bukele added that the government plans to build a new hydroelectric plant that will generate 2,000 megawatts since there are only 95 megawatts. That energy would not only go to Bitcoin mining but also to health and other social projects.
The relevance of Bitcoin within the world economy has led many countries to create regulations on its use. When Bukele first read about the pioneering cryptocurrency, he thought that it was a solid system. Its ability to recover from all-time lows and withstand the worst global and political scenarios convinced him of its strength.
By Alexander Salazar
