Salvador’s Bitcoin Tender Scrutinized by Steve Hanke Who Isn’t Convinced

Globally acclaimed Economics Professor Steve Hanke, who is currently teaching the subject at Johns Hopkins University, has thoroughly examined Bitcoin’s Legal Tender proposal of El Salvador. He has criticized El Salvador as well as Bitcoin because he thinks that Bitcoin will ruin the country’s economy. He denied that crypto has some package for countries that are part of the Latin American region and believes that it will only give the final push to the falling economies.

When Hanke heard the news of Bitcoin getting legalized through a tender in El Salvador, he couldn’t wait but to pass on comments. He said that although he is no fan of crypto such initiatives are not for the countries like El Salvador to take. The risks of adopting crypto can be taken by countries that are the richest economies such as China and Russia. According to him, neither El Salvador nor any country from the Latin American region is capable of adopting crypto. It would be a complete disaster when already their economies are off-track and going down rapidly. He said that the economy of El Salvador is on the edge and embracing Bitcoin will only ensure the last push towards the fall.

Steven Hanke has been advocating that the countries would need to seriously consider embracing currency boards. However, they should, at all costs, avoid developing their interests towards Bitcoin or either crypto adoption.

Steve Hanke, who is an American citizen, is a globally acclaimed Economics professor. He is currently teaching the students on the subject at the Johns Hopkins University. He had served Cato Institute as its senior fellow and remained a director on the Board of Directors of Troubled Currencies Project. He was also appointed by the former US President Reagan in 1981 as part of his administration’s financial and economic wing.

In 2018, Hanke criticized the central banks and said that the central banks have been miserably failing in the delivery of their duties. He then explained that there were more than 10 countries at that time which were facing hyperinflation. He noted that in these countries, the central banking system has failed completely while the economies have collapsed miserably. He then suggested that these countries should immediately develop currency boards or otherwise embrace US Dollar currency. He argued that currency boards are capable of bringing down hyperinflation considerably. However, in the situation of crisis, central banks have not been able to counter the crisis.

However, he is also infamous for having no love for either Bitcoin or crypto. In fact, he has proven his disliking of crypto on various occasions several ties. In April this year, he stated that he does not know why Bitcoiners run from accepting the flaws in the so-called “currency”. He then suggested that if Bitcoin were to become the future of the economy, then it has to convince the whole world simultaneously. But when there is an opportunity, those of are fond of Bitcoins, run away and don’t want to listen, said Hanke.

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