Steve Hanke warns BTC could 'completely collapse the economy' of El Salvador
Steve
Hanke, a professor of applied economics at Johns Hopkins University,
has warned that El Salvadors recent adoption of Bitcoin (BTC) as legal
tender has the potential to “completely collapse the economy.”To get
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Steve
Hanke served as a senior economist under President Ronald Reagan
administration from 1981 to 1982. Hanke has previously described BTC as a
speculative asset “with a fundamental value of zero,” and in April the
78-year-old tweeted “cryptocurrencies are the future of money. Bitcoin
is not.”
Speaking with streaming financial news provider Kitco News
on June 15, the university professor noted that BTC hodlers from
regions such as Russia and China could now target El Salvador to cash
out their holdings — essentially draining the country of its U.S.
dollars:
“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. ”
During
the interview, the economist described the elected representatives in
El Salvador who voted in favor of president Nayib Bukeles Bitcoin law as
“in a word, stupid,” and questioned how BTC could function as a legal
tender in day to day transactions, in a country where most citizens rely
on cash.
