The President of El Salvador believes that the ability of the Federal Reserve to print money is a “moral crime”
El Salvador’s President Naib Bukele predicted a change from the central bank model in the existing Western economy to a more secure decentralized system. The politician was also critical of the Fed.
According to Bukele, the Fed’s ability to print money is a “ moral crime “ as it devalues the currency and “robs” people of their savings.
“The concept of savings has been destroyed. It doesn’t make any sense to save money anymore … If you saved $50,000 [in the 80s], then you have been robbed of 90% of your money [by] now,” said the President of El Salvador.
As of September, annual inflation in the United States was close to a forty-year high. The Federal Reserve has been taking action in recent months to tighten interest rate policy to help deal with rising prices.
But such a measure, it seems, was not effective enough. The regulator is already under pressure, in particular from the media and experts, to change policy before a global recession hits.
According to the resident of El Salvador, people have realized the risks associated with inflation and are ready to consider alternative systems.
Bukele expects the BRICS countries to create their own economic system, but the politician does not believe that Western countries will join it because of the participation of the Russian Federation. It is likely that the West will consider alternatives that are more “independent” and “uncensored”, but at the same time “fully decentralized”.
And Binance CEO Changpeng Zhao, on the contrary, softened the rhetoric against regulators. He stated that CBDCs are no longer a threat to the crypto industry.
The entrepreneur noted that thanks to the blockchain, on the basis of which the digital currencies of central banks function, regulators and financial institutions will be able to change their position on innovation. This will become a prerequisite for the widespread implementation of the blockchain and the growth of confidence in this development.
