Not surprisingly, many are skeptical of El Salvador’s decision to make Bitcoin (BTC) a legal tender recently.
According to an economist, Steve Hanke who served under President Ronald Reagan from 1981 to 1981, approving Bitcoin as a legitimate tender would wreck El Salvador’s economy.
Clearly, BTC hodlers from several regions in Russia and China will target El Salvador to liquidate their holdings thus causing the US dollar to depreciate sharply.
“It has the potential to collapse the economy because all the dollars in El Salvador can be withdrawn and no money is left for the country. El Salvador does not have a domestic currency. ”
Even more shocking, the figure called the Bitcoin law proposed by El Salvador president Nayib Bukele, as ‘stupid’, by questioning how the BTC would function as a legitimate tender in day-to-day transactions.
"It is impossible to pay taxi fares using bitcoin. While 70% of the people in El Salvador do not have a bank account. "
For the record, in April in a tweet Hanke there agreed if crypto is the future of the currency. But not Bitcoin (BTC).
Bitcoin bulls hate to discuss the flaws of bitcoin.
Cryptocurrencies are the future of money. Bitcoin is not.
Read my recent article, which explains how Bitcoin will be replaced by better cryptocurrencies, specifically with a cryptocurrency board.https: //t.co/E5cc5MRAit
- Steve Hanke (@steve_hanke) April 12, 2021
Apart from Hanke, JPMorgan also thinks that the use of Bitcoin as a legal tender makes it difficult to see economic gains, especially in negotiations with the International Monetary Fund (IMF).
