El Salvador is three months deep into using Bitcoin as a legal currency since September. As the crypto space is now expanding, Nayib Bukele, the pro-crypto President of the country has predicted that the days of fiat currency are gone for good. The team “fiat” refers to the existing physical currencies like the Rupees or the Dollar. Bukele tweeted that his country is the “spark” that has ignited a “real revolution” by legalising Bitcoin.
The 40-year-old Salvadoran President often tweets about new Bitcoin purchases made by his government. He is also known to give updates about how Bitcoin has been favouring the Salvadoran economy via his official Twitter handle.
What has been called by international organizations as “The #Bitcoin Experiment”, is nothing more than the world watching how mass adoption changes a country’s economy.
If it’s for the good, it’s game over for FIAT.
El Salvador is the spark that ignites the real revolution.
— Nayib Bukele 🇸🇻 (@nayibbukele) December 23, 2021
Bukele’s pro-crypto approach has, however, dragged El Salvador to the receiving end of criticism and warnings in recent days.
Recently, the International Monetary Fund (IMF) warned El Salvador to stop using Bitcoin as a legal tender, given its high price volatility and linked risks to factors like consumer protection, financial integrity, and financial stability.
Earlier this month, Andrew Bailey, the governor of Bank of England (BoE) expressed concerns for the citizens of El Salvador, questioning if Salvadorans are even aware of the risks they have exposed their finances to.
These concerns from leaders and global financial institutions for El Salvador come at a time when several other nations, including India, are mulling over the legitimacy and regulation of cryptocurrencies.
Recently, Russian President Vladimir Putin expressed criticism of the crypto space calling the market highly risky and volatile.
Regardless, Bukele has been pacing forward by bringing in more crypto-friendly items and activities to his nation.
From establishing Bitcoin ATMs to creating a government-backed Bitcoin wallet called Chivo for Salvadorans, Bukele has been going bullish in terms of expanding crypto acceptances and use cases.
In November, Bukele revealed his plans of building a Bitcoin City at the base of the Conchagua volcano, in order to power Bitcoin mining with renewable energy and tackle the carbon footprint issue associated with the process.
The country now has close to 1,500 Bitcoins in its reserve which adds up to $76,417,935 (roughly Rs. 574 crore). Presently, Bitcoin is trading at around $50,973 (roughly Rs. 38 lakh) on international exchanges like CoinMarketCap.