The National Bitcoin Office of El Salvador has appointed Dr. Saifedean Ammous, renowned author of “The Bitcoin Standard,” to provide consultancy on economic policies. Dr. Ammous’s book, published in April 2018, explores the evolution of money and the transition from stable value storage to fiat currencies.
Embracing the Bitcoin Standard
El Salvador, the smallest country in Central America, has seen modest economic growth in recent years. According to reports, poverty, and inequality have declined significantly, with poverty rates dropping from 50% to 30% and extreme poverty falling from 10% to 1% between 2010 and 2019. However, the COVID-19 pandemic caused a major setback, resulting in an 8.2% GDP decline in 2020. When El Salvador appointed Dr. Ammous, he expressed his excitement about working in a pioneer country that has adopted the Bitcoin standard. In an interview, he highlighted Bitcoin’s unique ability to provide a robust asset that does not depreciate over time. He emphasized the negative effects of holding onto depreciating money, which discourages saving and promotes debt. During his visit to El Salvador, he delivered lectures and discussed economic freedom with President Nayib Bukele. The Bitcoin Office announced that Dr. Ammous will serve as its economic advisor. As per reports, earlier in January 2023, El Salvador passed a law to regulate the issuance of digital assets by both state and private entities. The bill, supported by ruling party lawmakers and President Nayib Bukele, aims to attract domestic and foreign investors while providing financing opportunities for citizens, companies, and the government. The law received 62 votes in favor out of 84 seats in Congress. It establishes the National Commission for Digital Assets and the Bitcoin Funds Administration Agency to manage and invest funds from public offerings of digital assets. The law does not apply to central bank-issued digital currencies or legal tender cryptocurrencies like Bitcoin.
Dr. Ammous’ role as an economic advisor allows him to contribute his insights and recommendations to shape El Salvador’s economic policies and initiatives related to cryptocurrencies, providing a unique perspective based on his research and understanding of Bitcoin’s role in the global financial landscape.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments. This is a news article only.
