El Salvador’s legal adoption of Bitcoin (BTC) has become the top agenda of the crypto industry. There are many different opinions on this matter.
Nigel Green, the founder of deVere, one of the world’s leading financial institutions, supported this movement. The CEO said that this move started “the beginning of a new world” and that the nation made history with this adoption. Green also believes that after the success of the app, other nations will have to follow El Salvador’s footsteps.
“It is almost universally accepted that the future of money is, one way or another, inevitably digital.”
Green, however, is cautious in some ways. Considering that El Salvador currently uses the US dollar as a means of payment, adding Bitcoin here may cause different problems for the country.
Since El Salvador still uses a currency minted by another country, it does not have the opportunity to voluntarily issue money. Dollars in the country must be borrowed or earned to make them available in the country. Thus, Bitcoin adoption can pose various problems. “There is a possibility that the dollar will run out in El Salvador and that institutions like the IMF may not look favorably on a country that has adopted Bitcoin,” Green said.
This issue was one of the reasons that sparked protests in El Salvador against the adoption of Bitcoin as legal tender in the country. However, the CEO thinks that when it comes to inflation, devaluation and purchasing power, the Bitcoin movement has a positive effect on the country’s economy in the long run.
“Bitcoin operates on a global scale. It is therefore heavily influenced by broader global economic changes. Additionally, as central banks around the world devalue their currencies, Bitcoin’s supply is limited. Therefore, Salvadorans will find that newly adopted currencies give them more purchasing power.”
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