TL;DR Breakdown
- Fidelity Investment company’s analyst says Bitcoin adoption by El Salvador is not significant enough.
- The adoption has motivated many countries to enter the crypto world.
Despite many experts saying El Salvador’s moves are brilliant and historic, Jurrien Timmer, director of Global Macro of Fidelity Investment, feels that the world exaggerates the influence of BTC adoption by the nation.
Earlier this month, El Salvador declared Bitcoin (BTC) a legal tender in the country. This move by the country impressed many crypto proponents when they started considering it a big step to increase BTC adoption. Many believe that this would create a ripple effect on other small countries to motivate the citizens to invest in crypto.
However, Timmer has a different point of view. During an interview with CNBC, he said that the development is appreciable, but it is not as significant as it is believed. He further justified his statements by adding that the country is using US Dollars and BTC works only on the side.
The analyst said that things would have been different and significant if El Salvador had dropped the US Dollar and made BTC the only transaction medium.
The analyst always makes strong points on different crypto-related issues. He stated,
” The development is definitely interesting, but I think its significance is a little bit overplayed….its not like they have dropped US dollars. All the trades are still settled in USD, and people can decide between the two, but it is the first real test for Bitcoin as the value of exchange.”
Jurrien Timmer
The positive effects of El Salvador government’s decision
El Salvador has faced major criticism from the international monetary bodies and institutions like the International Monetary Fund (IMF) and World Bank after its BTC adoption decision. Many credit rating companies have relegated the country’s financial attitude towards cryptocurrencies. However, President Nayib Bukele and his government are confident about their plans.
Earlier, Bukele had said that the government decided after observing that 70% of the citizens do not have banking facilities. BTC adoption by the country has attracted many investors from South American countries like Argentina and Paraguay to consider it as a rescue plan.
The mainstream media is continuously offering a stern picture about the country, saying that the majority of the citizens are not happy with the government’s plans and decisions. But one cannot ignore the real data showing a huge rise in the count of downloads of the country’s Bitcoin wallet Chivo.
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