“Adopting bitcoin as legal tender puts us on a roller coaster”: El Salvador is about to embark on a cryptocurrency experiment that risks wrecking its economy
bitcoin as a national currencyThe government of the impoverished Central American nation aims to spend up to $75 million as part of a plan to hand out $30 to people who sign up to an e-wallet called Chivo, or “Cool.” That software-based system would allow an estimated 2.5 million Salvadorans to buy goods or pay for services in U.S. dollars or bitcoin, El Salvador’s two official currencies as of Sept 7.
The foray into bitcoin risks wrecking El Salvador’s $26 billion economy. The indebted nation’s central bank could be forced to spend hard-currency reserves to buy bitcoin if the value of the crypto asset craters and consumers rush to the safety of the dollar. The government can’t print its own money—El Salvador ditched the colón in favor of the greenback two decades ago—and is struggling to earn dollars.
“Adopting bitcoin as legal tender puts us on a roller coaster,” says Carlos Acevedo, an economist who served as governor of El Salvador’s central bank from 2009 to 2013. President Nayib Bukele has said that adopting bitcoin will help attract foreign investment, foster more and cheaper financial services and lower the cost of
, which reached a high of almost $6 billion last year. The 40-year-old president also wants to lure foreign investors to develop geothermal power from volcanoes to supply the large amounts of electricity needed for mining the cryptocurrency.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Muere el baterista de los Rolling Stones Charlie WattsCharlie Watts, el baterista de los Rolling Stones, ha muerto a los 80 años, de acuerdo con su publicista.
Weiterlesen »
Christina Haack and Tarek El Moussa's Son Brayden Starts Kindergarten: PhotoAmanda Kloots and more celebrity parents have documented their kids’ major milestones with first day photos — take a look
Weiterlesen »
Ante el repunte de la variante Delta, Fernanda Castillo arremete contra los que no quieren vacunarseLa estrella de El Señor de los Cielos y Enemigo Intimo, tomas sus redes para enviar un fuerte mensaje a los incrédulos
Weiterlesen »
Con los estudiantes en los campus, volvió la vida universitaria, pero cargada de reglas por el COVIDLas universidades de Cal State, la USC y dos campus universitarios de la UC comienzan las clases esta semana, una oportunidad para ver si las vacunas, las mascarillas y las pruebas periódicas pueden minimizar la propagación de la variante Delta.
Weiterlesen »
A's Star Chris Bassitt Gets Plate In Face During Successful SurgeryChris Bassitt is on the road to recovery after getting his broken face fixed on Tuesday.
Weiterlesen »