A professor of Applied Economics at Johns Hopkins University, Steve Hanke, has lambasted El Salvador’s newfound love for Bitcoin.
He suggested that the country’s BTC adoption might “completely collapse the economy” because large BTC hodlers may target El Salvador – leveraging on the new Bitcoin legal bill to whisk away the dollars in the Central American country.
“It has the potential to completely collapse the economy because all the dollars in El Salvador could be vacuumed up and there’d be no money in the country. They don’t have a domestic currency.” Steve Hanke told Kitco News, a financial news platform.
The 78-year-old further criticized the lawmakers who voted in favour of the bill describing them as “stupid”.
Steve Hanke pointed out some interesting details to support his stance including the fact that 70% of El Salvador’s population don’t have a bank account.
“You’re not going to pay for your taxi ride with a Bitcoin. It’s ridiculous […] You’ve got 70 per cent of the people in El Salvador don’t even have bank accounts,” Steve said.
He also claimed that “dark forces” are behind the move.
Steve Hanke worked as a senior economist under President Ronald Regan between 1981 and 1982.
Although his comments on El Salvador’s Bitcoin adoption contradicts that of the Central American Bank for Economic Integration (CABEI), his views on the issue cannot be overlooked.