The Telegraph’s latest ax job on El Salvador’s bitcoin strategy is good for the money. In a hilarious turn of events, the mainstream media’s latest attack on the volcano bonds argues for bitcoin in all its glory. Everything the article “The World Should Be Afraid of El Salvador’s Bizarre Bitcoin Experiment” is precisely why people should support El Salvador’s audacity.
However, where is the disconnect? De Telegraaf can explain that. Speaking of the possible effects of hyperbitcoinization, they say:
“It could certainly lead to the panopticon being at least partially blinded. Your opinion as to whether this could usher in a libertarian utopia or archaic free-for-all depends largely on whether you think the US is a quasi-imperialist bully or generally a force for good.
Funny thing is, The Telegraph admits that the US has abused the “exorbitant privilege” that comes with the dollar’s status as an international reserve currency. And they even cherish it. What The Telegraph doesn’t do, however, is talk about inflation, and how the rampant dollar pressures of recent years have hurt the whole world.
What does The Telegraph think about The Volcano Bond?
The author sets the tone for the article by describing: the launch of the volcano bond† He uses derogatory language, but gives an honest look at an admittedly ridiculous scene. “The Central American country is poised to launch its first $1 billion so-called “volcano bond” in the coming days,” The Telegraph said.
From that moment on we agree with the message of the article. “Government bond issuance is rarely so interesting.” And he is right. It rarely is. Then, breaking all convention, The Telegraph admits that the US uses the dollar as a weapon:
“The US dollar is in every way the world’s currency of choice. It dominates global central bank reserves, trade finance and bank-to-bank payments and is used for about 88 percent of all foreign exchange transactions.
This means that the US Treasury Department can hire foreign banks to fulfill their bids on pain of being excluded from the dollar clearing system, which no lender could survive.
Somehow, The Telegraph doesn’t consider “conscripting foreign banks to carry out their bids under penalty of being locked out” as malicious. However, we agree on everything else. And to top it off, the author beautifully mentions bitcoin’s value proposition:
“Cryptocurrencies are a means of undermining the power of the dollar. They enable online payments between two parties without the need for a financial intermediary. This opens up the possibility of financial products and services that are accessible to everyone and not controlled by anyone.”
Of course, “accessible to all and controlled by no one” seems to be a bad thing for The Telegraph for some reason. Other than that, we totally agree with this part of the article.
BTC price chart for 03/23/2022 on Bittrex | Source: BTC/USD on TradingView.com
An attempt to throw El Salvador under the bus
No hatchet would be complete without an attack on El Salvador as a sovereign country. Here we lose our connection with the author. He’s trying to imply that escaping the hegemony of the US dollar is somehow inherently evil. In doing so, he puts cryptocurrencies and other fiat currencies in the same bag.
“It also puts the Central American country in a somewhat dubious business. India is said to be considering a ruble-rupee swap that will allow it to buy oil cheaply from Russia, and Saudi Arabia is considering pricing some of its crude oil in yuan.”
Isn’t the author mixing his metaphors here? Wasn’t this a criticism of bitcoin’s adoption? At least he’s still optimistic about a dying horse. “There is very little chance that the dollar will soon lose its crown as the global currency of choice,” he predicts. Depending on what “soon” means to him, he might be right. The article’s closing remarks make it seem like The Telegraph is even more optimistic about bitcoin:
“However, any new initiative like El Salvador’s bitcoin bond could take away the dollar’s supremacy a little bit, potentially making the world a little more difficult to control and a little more dangerous.”
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
President Bukele, himself a social media expert, responded mercilessly to The Telegraph’s criticisms. “Invest in Volcano Bonds and “make the world a lot harder to control”! Bitcoin solves colonialism!” Enough said.
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