El Salvador Postpones Bitcoin-Backed Bond Issuance But President Insists They Will Help Undermine US$
Nayib Bukele, the pro-crypto president of El Salvador, has tweeted that its Bitcoin-backed “Volcano Bonds” initiative will “make the world a little harder to control” and end dollar supremacy. The president’s comments were made the same day the government of El Salvador postponed the issuance of “volcano bonds” due to adverse market conditions.
Invest in Volcano Bonds 🌋 and “make the world a little harder to control”!#Bitcoin dissolves colonialism! https://t.co/Iqr0mVvBAt
— Nayib Bukele (@nayibbukele) March 22, 2022
El Salvador had planned to issue groundbreaking Bitcoin-backed bonds between March 15 and 20, but it has now been postponed to September.
The mainstream financial media has long been wary of El Salvador’s embrace of cryptocurrency since it made Bitcoin legal tender alongside the US dollar. Moody’s even lowered El Salvador’s credit rating almost exclusively on the basis of its cryptocurrency-based monetary and fiscal policies.
The US Dollar, Cryptocurrency and Colonialism
Bukele’s comments were made in direct response to an article written by The Telegraph, a major British broadsheet newspaper, which said that “the world should be afraid of El Salvador’s bizarre Bitcoin experiment.” The article argued that this is because cryptocurrency, with its decentralized nature, allows individuals and countries to raise money without international oversight, which “may make the world a little harder to control and a little more dangerous.”
Currently, the US dollar is used in 88% of foreign exchange transactions and generally dominates global central bank reserves. This provides the US with an enormous amount of soft power to exert over individuals, banks and countries by threatening to exclude them from the dollar clearing system. A decentralized financial system based on P2P crypto exchanges would undermine this source of US influence.
Bukele welcomes this change, saying the world should “become a little harder to control” and “Bitcoin is solving colonialism”. This isn’t the first time Bukele has caused controversy. Not long ago, a Nobel laureate, Nouriel Roubini, said that Bukele deserves to be impeached for bankrupting his country over his Bitcoin gambling.