El Salvador’s pro-crypto president, Nayib Bukele, tweeted that his Bitcoin-backed “Volcano Bonds” proposal will “make the world a bit difficult to regulate” and put an end to the dollar’s dominance. El Salvador’s government postponed the issuing of “Volcano Bonds” due to adverse market circumstances on the same day as the president’s remarks.
El Salvador had planned to start issuing ground-breaking Bitcoin-backed bonds between March 15-20, but that has now been pushed back to September.
Since making Bitcoin legal tender alongside the US dollar, the mainstream financial media has been cautious of El Salvador’s adoption of cryptocurrency.
Indeed, El Salvador’s credit rating was nearly entirely reduced as a result of its crypto-based monetary and fiscal policies, according to Moody’s.
Bukele’s remarks came in response to a piece in The Telegraph, a major British broadsheet newspaper, that stated that “the world should fear El Salvador’s odd Bitcoin experiment.” The reason for this, according to the article, is that cryptocurrency’s decentralized nature allows people and countries to collect funds without international control, “possibly making the globe a little tougher to police and a little more hazardous.”
Currently, the US Dollar is utilized in 88 percent of foreign exchange transactions, and worldwide central bank reserves are dominated by it. By threatening to shut them out of the dollar-clearing system, the US gains a tremendous amount of soft power over individuals, banks, and countries. This form of US power would be undermined by a decentralized financial system based on peer-to-peer crypto exchanges.
Bukele applauds the adjustment, claiming that the globe should be made “a little bit more difficult to police,” and that “Bitcoin addresses colonialism.” This isn’t the first time Bukele has stirred up debate. Nouriel Roubini, a Nobel Laureate, recently stated that Bukele should be impeached for bankrupting his country with his Bitcoin bets.
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