El Salvador is set to take into effect the bitcoin law from September 7.
The Latin American country created the Bitcoin Law on June 9 after Congress approved Bitcoin as legal tender.
The bold decision was met with criticism from the likes of the International Monetary Fund, the World Bank, and many other agencies.
The latest to join the list is Steve Hanke, an economist at Johns Hopkins University.
Hanke slammed El Salvador’s President Najib Bukele for continuing his bitcoin adoption scheme, claiming that the president is playing with fire that could burn El Salvador, and added:
The State Department sanctioned 14 El Salvador government officials, the World Bank and International Monetary Fund issued warnings, and ELSL bonds collapsed.
But the president of El Salvador ignored these red flags and walked into his own bitcoin law.
Bukele plays with fire.
Bukele responded to the economist’s tweet, calling him a “Boomer,” a term used to mock people who don’t understand technology.
President Bukele has faced a lot of criticism from around the world as well as from within the country.
Even the country’s opposition party sued to stop the implementation of the Bitcoin law citing the economic imbalance.
President Bukele has no intention of stopping the adoption of Bitcoin in the country:
The warnings from the International Monetary Fund and the World Bank were mainly related to the negative impact of bitcoin’s volatility on lenders and the financial market.
However, the Salvadoran president has emphasized all along that the Bitcoin law is not a sham and was only passed for the sake of the international press.
The president believes that bitcoin can solve the banking crisis in El Salvador, where more than 70% of the population does not have a bank account.
He also launched a free bitcoin distribution campaign to promote the use of a bitcoin wallet where every adult citizen will receive a bitcoin worth $30.
The Central Bank of El Salvador recently released its first draft regulatory policy for banks which included rules and regulations for handling bitcoin and handling bitcoin transactions.