Nayib Bukele, president of El Salvador, has got himself a pair of laser eyes – on his Twitter profile at least. Laser eyes are something s...
Nayib Bukele, president of El Salvador, has got himself a pair of laser eyes – on his Twitter profile at least.
Laser eyes are something social media users give themselves to show they love cryptocurrency – and Bukele proved his crypto-enthusiasm last week by having El Salvador become the world’s first nation to make Bitcoin legal tender.
El Salvador’s parliament passed Bukele’s proposed legislation on June 9, after he announced his plan just a few days earlier. The law will take effect in September.
Some Bitcoin fans have leapt on this as a step towards much broader acceptance. But the changes in Bitcoin’s market value since Bukele announced his plan gives crypto-sceptics reason for doubt.
Over the past week, Bitcoin’s value was as high as $38,200 and as low as 31,428. Over the past month it has fallen from more than $58,000. This isn’t the type of price volatility any government generally wants to see in a currency.
Such fluctuations show Bitcoin’s weakness as a viable alternative to central bank currencies – good only for transactions you don’t want traced and as a speculative investment.
So what is Bukele thinking in wanting to make Bitcoin legal tender for the small Central American nation (population about 6.5 million) whose economy accounts for less than 0.05%...
