El Salvador’s president says altcoins will not compete with Bitcoin in the country

El Salvador does not plan to adopt any altcoin cryptocurrency as legal tender. President Nayib Bukele said this in a подкасте with Peter McCormack.

He said the country already finds it difficult to sustain even two official currencies.

“It’s impossible to introduce ten means of payment; even two are difficult. So, we will have Bitcoin and the dollar,” Bukele said.

At the same time, he does not intend to ban altcoins. The head of state emphasised that cryptocurrency projects may operate in the country.

The bill recognising Bitcoin as legal tender was approved in early June. The opposition called the legalization of the first cryptocurrency unconstitutional.

JPMorgan experts doubted that the move would bring tangible economic benefits to the Central American country. A similar conclusion was reached by ForkLog’s surveyed experts. Professor Steve Hanke of Johns Hopkins University said that the adoption of the first cryptocurrency could destabilise the economy.

As noted, international financial institutions reacted in opposite directions to El Salvador’s requests for help with cryptocurrency adoption — CABEI said it would assist, while the World Bank declined.

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