Bitcoin threatens your authority. In approving bitcoin as legal cash in El Salvador and announcing plans to construct a “Bitcoin City.” The government has moved one step ahead of the rest of the world. In terms of encouraging the widespread adoption of bitcoin. Other countries, including the United States. Look to be at risk, according to Milena Mayorga, El Salvador’s ambassador to Washington. Who described the situation as “disappointing.”
Mayorga stated why people are afraid and anxious in an interview with CoinDesk TV’s “First Mover” on Wednesday. Saying, “A lot of countries are looking at us, and they will follow our leadership.”
El Salvador became the first government to recognize bitcoin as legal tender in September. Causing consternation throughout the global financial system at the time. Other increasingly ambitious ambitions to establish bitcoin at the center of the country’s economy. Such as the creation of a bitcoin exchange, are bets on the reality. That the United States’ worldwide supremacy is fading.
‘I appreciate the concerns that have been expressed in D.C. about the decline in the purchase power. Of the dollar, and we can understand that,’ Mayorga added. In addition, Mayorga stated that “El Salvador needs to go forward [because] it wants to be on another plane of existence.” Following the collapse of the country’s original currency, the colón, in 2001. El Salvador adopted the United States dollar as its official currency. Making it the first country in the world to do so.
El Salvador’s monetary experiment is raising questions
Concerns have been voiced about El Salvador’s large-scale monetary experiment. Which is currently underway. As a result of the “serious concerns” linked with cryptocurrency use in El Salvador. The International Monetary Fund (IMF) advised on Tuesday. That the government strengthen its legislation and governance.
El Salvador will be subjected to a thorough investigation by the international community in 2022. Bitcoin Threatens and apart from the recently announced “Bitcoin City,” which is a low-tax. Legal municipality that positioned as a haven for wealthy bitcoin investors. The Central American country plans also to raise $1 billion through the sale of a bitcoin bond. (A tokenized financial instrument), in partnership with Bitcoin infrastructure company Blockstream.
Additionally, a large number of individuals are beginning to seriously explore digital currencies. Despite the fact that no other government has yet followed El Salvador’s lead in placing bitcoin. On an equal footing with the United States dollar. Central American countries such as Honduras and Guatemala. For example, are investigating the usage of digital currencies issued by their national central banks.
According to the Biden administration, the events going place south of the United States border. Have kept under wraps so far. Although “we have to have the conversation”. Mayorga believes also that “[the United States] must accept our movement and realize. That we want to elevate ourselves to a higher level and with a definitional system.” Because we are an independent country.