Nayib Bukele said that Bitcoin will supplant fiat money
Nayib Bukele, the President of El Salvador, who has been often criticized for the legalization of Bitcoin in the country, is sure that in the future Bitcoin will gain widespread use and will completely supplant fiat currencies. The politician recently wrote about it in his tweet.
Bukele also answered criticism of the Bitcoin adoption. He said that the introduction of Bitcoin helps transform the country’s economy. Moreover, in the future, when the dominance of Bitcoin over traditional payment instruments becomes obvious, El Salvador will be called the spark that ignited the flame of revolution in the financial world.
The President believes that the adoption of Bitcoin and mining on renewable energy sources will lead the country to success. In the autumn, the South American state has already started using volcanic energy to mine cryptocurrencies in order to contribute to a decrease of the carbon footprint. But some environmentalists think that utilization of this type of energy can cause more harm to the environment than burning of oil.
Since September 7, according to the previously announced plan, the authorities of El Salvador have recognized Bitcoin as a legal means of payment and now continue to accumulate cryptocurrency. At the beginning of December, when the Bitcoin exchange rate declined, the government bought 150 coins, and on December 21 it purchased another 21 coins.
Many international organizations have taken a swipe at the admission of Bitcoin as a functional currency. Experts of the International Monetary Fund believe that the implementation of cryptocurrencies can destroy the nation’s economy. The same opinion is shared by the Central Bank of Great Britain governor. In his judgement, due to the high volatility, Bitcoin cannot be equated with traditional currencies.
Earlier, Bukele announced plans to establish a cryptocurrency city called Bitcoin City. The project is oriented to developing digital currencies in the country, as well as other modern technologies. Bitcoin City residents will have to pay only VAT of all taxes, and renewable sources will be used to provide the city with energy.
Besides, the president announced the construction of 20 schools and a veterinary hospital using funds received from Bitcoin investments. According to him, other developing countries interested in digital currencies can follow the path taken by El Salvador.