The CEO of the crypto firm Strike believes that Bitcoin is not here to replace the dollar but is a monetary network that stores value and which cuts out intermediaries. The president of El Salvador invited the 29-year-old CEO to bring his payments app company to the Central American country. El Salvador is in the process of making Bitcoin legal tender.
El Salvador receives an estimated 24.1% of GDP by way of remittances.
Strike operates on the Lightning Network and enables users to transact in borderless bitcoin payments. This is ideal for El Salvador, as, according to the World Bank, it currently receives an estimated 24.1% of GDP by way of remittances from citizens working in other countries. The president of El Salvador had reached out to Mallers after seeing the success garnered by the Strike payments app. According to the Business Insider report, El Salvador’s president was looking for advice on financial inclusion, emerging markets, and more freedoms for the individual.
Global financial regulators criticize El Salvador.
The CEO of Strike also spoke about his views on what is currently happening in the monetary system. It’s his belief that the Federal Reserve accelerated inflation due to the massive amounts of currency that it printed into existence. He believes that this was a “theft of wealth”, and had vastly decreased the purchasing power of those using the dollar. He further explained how this was especially deleterious for those who used the dollar outside of the US and who didn’t benefit from stimulus checks. El Salvador has faced a lot of criticism from global financial regulators for making bitcoin an optional legal tender.