Bitcoin Supporter Nayib Bukele Criticizes FED

President of Bitcoin country El Salvador Nayib Bukelein an interview he gave today, about the economic situation around the world and the future. blockchain shared his opinion on the position of his products in the financial sector.

Speaking on Tucker Carlson’s program, Bukele first criticized the US Federal Reserve (FED) and then the reactions to his country’s Bitcoin investment.

Bukele: FED Is Not Behaving Ethically

Bukele, the president of Salvador, argued that the US dollar was devalued due to the constant printing of money by the FED, thus officially “stealing” the savings of the citizens, and argued that this was a moral crime.

“They destroyed the definition of savings. Saving money has lost its meaning nowadays. If you saved $50,000 in 1980, your money has lost 90% of its value today.”

Bukele, people of rising inflation due to money printing “wake up” is thinking. People lose their trust in central banks and turn to cryptocurrencies.

Finally, the President made a prediction about the future of the financial sector. According to Nayib Bukele, Western countries will adopt the decentralized finance model in the coming period.

Is Bukele Right in His Discourses?

President of the Central American country bitcoin continues to withstand the criticisms made on its investments. self-critical central financial circles “with theft” he accuses. Is Bukele right in his statements?

Central banks are required to print money in ethical terms as much as the annual growth in their countries. When the money printed is more than the annual economic development in the country, demand-driven inflation occurs because the goods and services produced cannot keep up with the amount of money.

The balance sheet of the US Federal Reserve stood at $4 billion before the pandemic period. According to the data, the Fed doubled its balance sheet to $9 billion to bypass the economic recession caused by the pandemic. This situation led to inflation and the loss of purchasing power of people who saved dollars.

Based on these data, we can say that there is some truth to what Bukele said.

The origin story of Bitcoin is based on exactly this scenario. The FED provided the exit from the 2007-2008 crisis by printing money. Thus, while the losses of the companies were compensated, the savings of the citizens eroded. Satoshi Nakamoto, who saw this situation; started working for a digital, limited maximum amount, decentralized and global currency.