El Salvador’s El Dorado: Bitcoin, the New Official Currency

A small country in Latin America, El Salvador, has made history by making Bitcoin an official form of payment. At the same time, Bloomberg’s writers are not sure that the country will be able to profit from this change.

El Salvador’s El Dorado: Bitcoin, the New Official Currency

Bedazzled fanatics’ eyes

Bloomberg’s authors say that El Salvador’s president Nayib Bukele doesn’t know anything about Bitcoin and is only doing what he thinks people want. He just likes to look popular on the internet.

Bitcoin can be used to buy things and it can be a store of value (like gold) so people are excited about it. It is accepted by merchants and also has a visa program that allows foreigners who invest in Bitcoin to receive citizenship.

Bloomberg also recognizes the advantages of Salvador’s free market approach and how the cryptocurrency community is excited about it.

Reasonable concerns

The IMF is worried about Salvador’s digital reforms. They are not sure that they will give out the next $1.3 billion in loans to Salvador’s leader, Bukele. Bukele needs these funds to be able to stabilize the economy and contain the aggressive impulses of the local upper class.

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