El Salvador’s decision to create the law to mandate that Bitcoin become the country’s legal tender was certainly one of the great conversations inside the cryptomarket and even outside.
Recently, even important names in Brazilian politics commented on the Central American country’s decision. In this scenario, we had the Fernando Haddad (PT) criticizing El Salvador’s adoption of Bitcoin.
Earlier this Monday, September 6th, Haddad spoke on social media about his perception of the country’s use of cryptocurrencies. For the former candidate for president of the republic, the new law in El Salvador threatens the sovereignty of currencies From Latin America.
“If nothing is done, the countries of Latin America will lose one by one sovereignty over their currencies”, said the former candidate, indicating that he believes Bitcoin will take away the power of local currencies.
Technically, he’s not wrong, as Bitcoin’s core idea is to take the bank’s financial power and return it to the people.
If nothing is done, the countries of Latin America will lose sovereignty over their currencies one by one. The US wants a euro without an EU, that is, a dollarized LA with a wall separating us from the north. The worst case scenario. Only an unyielding Brazil can curb this trend.https://t.co/pcCMpHJcOu
— Fernando Haddad (@Haddad_Fernando) September 6, 2021
However, the second part of the Tweet is more confusing, so to speak.
Haddad said, “The US wants a euro without the EU”, a dollarized Latin America with a wall separating us from the north. Furthermore, he revealed that this would be the “worst scenario” and that only Brazil can rebel against this idea and change this trend.
Bitcoin is not controlled by the United States (or anyone else) and does not represent the dollarization of currency in any other jurisdiction.
Still, Bitcoin is Bitcoin and the most it does is bitcoinize the investor’s money, since it can be sold for real, dollar, Argentine peso, Ethereum or whatever each one chooses – which does not justify the narrative point adopted by Haddad .
PT is a currency to rival the dollar
In light of Fernando Haddad’s statement, it is worth recalling that, recently, the greatest political figure in the PT, Luís Inácio “Lula” da Silva, talked about how Brazil needs to “separate” from the dollar through the creation of a single currency for the South American region.
Interestingly, Bitcoin would fit Lula’s definition of a currency escaping the dominance of the dollar.
Just see that in the Venezuela, the use of cryptocurrency is not discouraged, as it helps residents to escape US sanctions, the same idea used by El Salvador.
However, if Haddad’s position reflects the PT’s top leadership, the idea would be to create a fully state-controlled cryptocurrency from scratch — and to have Bitcoin as the villain, which strengthens US imperialist ideals.
Clear, this is just speculation based on the candidates’ opinions., but it could certainly be an important issue in the future, especially in the midst of the financial crisis and the weakening of the real against the dollar.
The vision of those who followed the adoption of Bitcoin in El Salvador
Recently, the Bitconheiros channel spoke with the guest Moritz Wietersheim, founder of the Specter portfolio.
Upon learning of El Salvador’s law for the adoption of Bitcoin, which takes effect from this Wednesday, the 8th, Moritiz went to El Salvador to learn about these changes and better understand the situation in the place, bringing a different view of the Haddad’s statism, being more drawn to someone who is inside the cryptomarket.
Weitersheim he said during the interview that, so far, Bitcoin does not have a very large representation as the media suggests, but that with the law starting to have an effect, it is possible to see these numbers increase, especially with the encouragement of entrepreneurs, like Jack Mallers and Strike investments to encourage the use of Bitcoin there.
In the interview, Moritz also spoke about the uncertainty about how the entire Bitcoin-integrated system will actually work, including custody.
“There are some projects out there [de custódia], the state is preparing a Bitcoin fund as a cold storage, there are also certain companies that are talking to government teams to offer a solution, but I can’t say more.”
This indicates that there is still no confirmation on how everything will be implemented — which is a bit problematic at this point in the championship.
But, regardless of the structural issues, the question of money sovereignty seems to have interested even bankers.
While explaining what multsig is for bankers and businessmen, Moritz also said that one of the bankers was admiring the possibility of protecting the state’s money.
“We explained to him that he still didn’t understand what multsig is that he can have a key in Panama, another in Miami and another in Mexico. So if you have a problem with the government, he might come to your company tomorrow and confiscate your Bitcoin, but he won’t make it. And this banker had eyes like that [arregalados].”
Specter portfolio founder also highlighted that the law is a “very strong announcement against the United States” and that, if Nayib Bukele is managing to implement his idea, it is because the United States does not feel so threatened by the adoption of Bitcoin, since they also have the dollar as their official currency.
“This is a very strong announcement against the United States, to say that ‘we are going to let Bitcoin compete against the dollar.’ I think if the US didn’t agree with that, they would have already killed Bukele, they would have launched a coup. In my opinion there is a group in the elite in the United States who are very pro-Bitcoin, allowing these experiments.”
Overall, Moritz’s view indicates that the Bitcoin is on the way to building relationships with bankers, entrepreneurs and that even the establishment gradually accept the idea of the cryptocurrency.
In fact, people seem to be willing to adopt the currency in the retail market as they are open to this new technology.
As stated earlier, it all depends on how the Bukele government, which Moritz described as “opportunist”, will handle the project.
Check out the full interview with Moritz: