Steve Hanke, one of the most prominent economists in the U.S. and a known “anti-bitcoin” said in an interview that El Salvador could face serious consequences in its decision.
According to Hanke, El Salvador’s economy could collapse because of what he calls a “stupid” decision to turn bitcoin into a legal tender.
The question is, why?
For bitcoin advocates all over the world, Hanke’s stance over El Salvador’s decision goes against their optimism that the Bitcoin Law would be a game-changer for the country.
One of the major reasons behind Hanke’s pessimism about El Salvador’s Bitcoin Law is its “forced” application to citizens.
He said citizens, especially business owners, would have no choice but to accept bitcoin as payment. But Jack Mallers, chief executive of crypto payment platform Strike, clarified that the use of bitcoin wouldn’t be forced on El Salvadorans.
He said citizens would have the freedom to choose either a bitcoin or a U.S. dollar in any transactions, also, no one would be forced to hold a bitcoin.
For illegal activities?
Hanke also said there are “dark forces” behind the implementation of the Bitcoin Law and these forces he is referring to are some government officials surrounding El Salvador President Bukele.
He said the U.S. State Department has confirmed that 14 government officials of El Salvador were involved in illegal activities. And Hanke added that 11 of these officials are close to the President’s inner circle.
That is why he is extremely concerned that the Bitcoin Law could be used for illegal activities perpetrated by these corrupt officials.
Image courtesy of Cointelegraph News/YouTube
