Unchained Bitcoin in El Salvador: Why Would Cypherpunks Support Government-Mandated Bitcoin Adoption? - Ep. 375
Jul 19, 2022
Nelson Rauda, a Salvadoran journalist with El Faro, dives into the complexities of Bitcoin adoption in El Salvador. He discusses President Nayib Bukele's controversial shift to Bitcoin as legal tender, highlighting its impact on the unbanked population and the skepticism surrounding the initiative. Rauda argues that the Bitcoin law may be more of a PR stunt than a true economic solution, questioning the government's intent and public understanding. He also critiques the Chivo wallet's limited success and the ongoing protests tied to this monetary revolution.
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Bitcoin Law's Swift Passage
- Nelson Rauda first heard of Bitcoin from Jack Mallers at a Miami conference.
- Five days later, he witnessed the Bitcoin law being rushed through El Salvador's legislative assembly.
Bukele's Power Play
- President Nayib Bukele, described as a populist with authoritarian tendencies, consolidated power before introducing the Bitcoin law.
- This control over the legislative and judicial branches facilitated swift, undemocratic policy changes.
Unbanked Reality
- Many Salvadorans are unbanked not due to lack of access, but because of the subsistence economy.
- They primarily use cash for daily needs, lacking surplus funds for savings or traditional banking.