Steve Hanke, Professor of Applied Economics at Johns Hopkins University, said that given the state of El Salvador’s economy, bitcoin is still not being used in practice for everyday transactions.
Additionally, Bitcointhe transaction fees of US dollars, the currency El Salvador uses, are high.
“The big problem with cryptos in general is that they cannot be converted into real legal tender that can be used cheaply and quickly,” Hanke told David Lin, moderator of Kitco News. “For example, you cannot exchange Bitcoin for US dollars cheaply and easily.”
The problem could become so serious that US dollars could be withdrawn from the country through Bitcoin transactions and the entire economy could “collapse”, said Hanke.
For more information on problems with transfers with Bitcoin, see the video above. Follow David Lin on Twitter at https://twitter.com/davidlin_TV.
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