Luis Membreno confirms that this is causing more trouble in the national economy and that it will cause the country to dollarize.
By accepting bitcoin as a legal tender, El Salvador will stop sending $ 7 billion annually into the economy, says economist Luis Membrano in a televised interview with DCS.
According to Membreno, this money, which is regularly distributed in the economy through the purchase of goods and services, will not be in circulation when sent through bitcoins, and there will be no money to pay for imports, which will lead the country to problems at exchange rates and jeopardize the sustainability of the dollar in the country. “The dollar will stop circulating,” he explained.
Imports and exports cannot be paid through Bitcoin
“If the money is not sent in dollars, we do not have to pay for imports, which leads to exchange rate problems and the durability of the dollar,” he said.
Membrano said it would also reduce dollars in the country because El Salvador, which receives money by sending and exporting dollars without producing it, wants to give them to anyone who comes to the country and exchange their cryptocurrency for cash. “We are going to give the little money we have to anyone who wants to change it,” he said.
According to Membrano, it is clear that the use of this cryptocurrency will create more problems for the national economy and cause a breakdown in the financial system. “After several analyzes by several international organizations, it has become clear that the bitcoin mafia is being used by the people for corruption and money laundering,” he added.
Great country risk
Another issue that worries economists is that the adoption of this cryptocurrency increases the risk to the country because the rapid approval of this measure has caused alarms of international investors lending in El Salvador, and it will further complicate the receipt of credits to stabilize the economy. .
One of those credits depends on the International Monetary Fund, which could provide $ 3 1.3 billion. However, negotiations with this organization are in jeopardy once the Bitcoin Act is approved.
“If nothing is mentioned this week with the International Monetary Fund, I assure you that the risk to the country will rise,” he said.