Is the Bitcoin ruler obscuring the crypto world?
El Salvador is transforming its reputation: President Nayib Bukele is aggressively imprisoning criminal gangs and appealing to the global crypto community. But what are the hidden consequences? Could democracy be undermined?
In September 2021, El Salvador became the very first nation in the globe to incorporate Bitcoin as a valid medium of exchange. Apart from the US dollar, now Bitcoin is also welcomed within this Central American country. President Bukele has even more aspirations, as he is called the "Bitcoin Dictator." His dream is to establish Bitcoin City, a city entirely funded by Bitcoins and where crypto would be the sole mode of payment.
As per political scientist Christian Ambrosius, Bukele's Bitcoin blueprints are rather vast concepts. In the recent "Wirtschaft Welt & Weit" podcast, he shares about his recent outing to El Salvador. He didn't spot any inkling of Bitcoin City and is doubting the likelihood of this grand plan. Bukele's idea is to "create a distinct image of the country and possibly draw in more people while generating more cash flow."
While one can spend Bitcoin on some beaches, the cryptocurrency has remained a niche phenomenon in the Central American nation according to Ambrosius. Luring the international Bitcoin society is a strategic aim: it's about redefining El Salvador's image and potentially enticing funds into the country.
For many years, El Salvador has been one of the most treacherous places on the planet. Gang violence had taken over many regions, making normal life almost impossible, as stated by development economist José Salguero. Bukele tackled this issue through a significant wave of arrests, but he also compromised democratic principles in the process.
Christian Ambrosius is a political scientist and a Central America expert from the Free University of Berlin. José Salguero is a development economist and a security and peace researcher from El Salvador, now residing in Germany. He is currently working on a project analyzing refeudalization and violence in his home country.
Host Andrea Sellmann discusses these subjects and more with Ambrosius and Salguero. They examine the expectations around Bukele's actions, his motives, the influence of Bitcoin on El Salvador, and the potential risks for the country's future.
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El Salvador's President Nayib Bukele, often referred to as the "Bitcoin Dictator," is not only spearheading the country's Bitcoin adoption but also envisions establishing Bitcoin City where Bitcoin would be the sole payment method. Despite the grand plans, noted political scientist Christian Ambrosius recently visited El Salvador and expressed doubts about the feasibility of Bitcoin City.
In light of El Salvador's decision to embrace Bitcoin as a legal tender, the Central American nation has garnered international attention from the Bitcoin community. The country's president, Bukele, sees this as an opportunity to rebrand El Salvador and potentially attract more investments.
Source: www.ntv.de
