By Larry Wright
El Salvador was the first country to ever engage Bitcoin as a legal tender in the early 2021s, a move that was strongly resented by the IMF, World Bank, and even by the legal and financial advisors of El Salvador.
It was believed by the governing body that as the price and value of Bitcoin continued to increase in the coming months and years, so would the market cap and GDP of El Salvador itself, but since the debut of the crypto program in the early 2021s things have managed to backfire a bit.
El Salvador’s Economy Suffers Because of Bitcoin
The first few months of the program were a delight because Bitcoin was already breaking every price record known to man and was climbing high over the price hierarchy with every passing day. This did put the earlier resentments of the financial advisors of El Salvador at ease but was not enough to convince the IMF and even the World Bank of the impending doom of this program years later, which they were extremely sure of.
The same thing has happened, as Bitcoin is tanking pretty rapidly, and there doesn’t seem to be any saving grace accompanying the cryptocurrency in the next few weeks; it seems that El Salvador decided to hop on the wrong bandwagon.
The economic profile of the country is in ruins because of making Bitcoin the legal tender; as the value of Bitcoin is tanking, the same is happening for the economy of El Salvador.
All of it has backfired pretty horrifically, and unless there is big cash out for the El Salvador government to dump their Bitcoin position as the legal tender announced by IMF or the World Bank, it doesn’t seem that things will go back to normal.
A research was conducted in which the people of El Salvador were asked whether the stand the El Salvador government took back in the day to make Bitcoin a legal tender was the right decision. About 80% nodded a strong ‘No’, which depicts just how bad and crooked this whole thing was from the get-go.