Updated: December 25, 2021 4:23:49 pm
El Salvador President Nayib Bukele, a staunch supporter of Bitcoin believes that days of fiat currency are gone for good. In a tweet, Bukele announced Friday that Bitcoin is the “real revolution” the world is seeing at present and days for fiat currency is limited.
The team “fiat” refers to the physical currencies like the Rupees or the Dollar. Through his latest tweet, the 40-year-old Salvadoran President targeted those who raised questions regarding El Salvador’s decision of legalising Bitcoin.
He tweeted: “What has been called by international organizations as “The Bitcoin Experiment”, is nothing more than the world watching how mass adoption changes a country’s economy. If it’s for the good, it’s game over for fiat,” adding that, “El Salvador is the spark that ignites the real revolution.”
In September, El Salvador became the world’s first nation to adopt Bitcoin as legal tender, a move that generated global media attention but also attracted criticism from the opposition and the International Monetary Fund (IMF) warning the country to not make Bitcoin a legal tender, considering risks related to the volatility of the cryptocurrency.
However, in November, Bukele said that it plans to build the world’s first “Bitcoin City”, funded with the issuance of a $1 billion Bitcoin Bond. The city will be located along the Gulf of Fonseca near a volcano. Bukele’s administration is counting on Bitcoin to spur the country’s economic growth, and investment, assuming that Bitcoin price remains on an overall upward trajectory.
According to Bukele, the residents of Bitcoin city won’t have to pay any income, property, capital gains or even payroll taxes. The city would be built with attracting foreign investment in mind.
It should be noted that until November 26, El Salvador had 1,220 Bitcoins and the El Salavdoran President is on a spree of adding Bitcoin to its country funds.
Meanwhile, Eswar Prasad, an international trade policy professor at Cornell University last week warned that the world’s most popular cryptocurrency could fade out in the near future. In a recent interview with CNBC, Prasad stated that Bitcoin’s lack of efficiency and its inability to facilitate exchange as a mode of payment will be the reason for its downfall.