El Salvador President responds to critics, says Bitcoin plan is ‘bulletproof’

By: Daniela Kirova
Daniela Kirova
Daniela was born in Bulgaria, grew up in Chicago, and then moved to Michigan to attend the University of… read more.
on Jun 23, 2021
  • El Salvador president says country's Bitcoin adaption plan is 'bulletproof'.
  • The move will also help reduce dependency on the USD, according to the president.
  • Adoption of BTC could stop El Salvador from accessing $1B IMF program.

After becoming the first country to usher Bitcoin (BTC/USD) as legal tender, El Salvador is making consistent and unapologetic efforts in the direction of full adoption. According to President Nayib Bukele, the risks are minimal and the move is a giant step forward for humankind, Reuters reported.

Lowering dependency on the US dollar

President Bukele said during an hour-long interview with Bitcoin podcaster Peter McCormack that the decision to embrace Bitcoin would enhance the economy and employment in the country. The World Bank’s refusal to provide technical assistance over transparency and environmental issues has not hampered his enthusiasm. Neither have the concerns the IMF expressed over the adoption of bitcoin. Commenting on the country’s plans to proceed with adopting Bitcoin, he said it “looks bulletproof”. He added:

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I’m pretty sure this is going to work, not only for us, but for humanity, because it is a leap forward for humanity.”

The move will also help reduce dependency on the US dollar along with “the new inflation that’s coming with all those new dollars,” Bukele said.

Criticism of adoption and counterarguments

According to analysts, the adoption of BTC might stop El Salvador from accessing a $1 billion program from the IMF. The IMF expressed legal and economic concerns about the adoption. The president of El Salvador countered that his government had not only made its plan more than clear but said outside support would have been “nice” to have but “we really don’t need it.”

What’s more, they are willing to provide as much additional explanation as needed. He compared the move to the country’s adoption of the USD in 2001, suggesting this is no different except for “the reasons why we’re doing this.” He said this decision was made to benefit the public, while the one in 2001 was “for the benefit of the banks”.

Interest in renewable energy  

Bukele added he had attracted a lot of interest from various entities in building a BTC mining hub. Renewable energy from El Salvador’s volcanoes will be used to this end.

“We have discovered new (geothermal) wells that will give us 95 megawatts, which is not huge but still quite considerable,” Bukele said.

It would cost $480M to build a Bitcoin mining plant. Construction of schools, bridges, and other facilities and infrastructure will be funded using Bitcoin.

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