Colombia has just elected a new president, and Bitcoin is expected by both its followers and concerned opponents.
Who is Gustavo Petro?
According to NYTimes, only 58% of Colombia’s 39 million voters turned out to vote. With more than 50% of the vote, Gustavo Petro was elected President.
This is a big event for the country. He is their first left-wing president, and his economic agenda has been described as “economic suicide.”
As Reuters reports, Petro has “promised to stop new explorations for hydrocarbons and new large-scale open-pit mines and to close exploration fracking pilots and offshore oil and gas projects, some of which are already under contract.”
He wants the country to transform from oil to renewable energy. Colombia is one of the largest crude oil producers in Latin America, their main export.
Petro’s proposal has been widely criticized, even by leading leftist world leaders, such as former Brazilian President Lula da Silva. Many see it as an unusable solution, with oil and mining as essential products for the country’s economy.
Petro also strongly flirted with the idea of printing money. Last year, he expressed support for the US FED Money Printing Policy during the Covid epidemic, seeing it as a success. We all know how it works for the dollar, and it looks ugly for weak currency economies like Venezuela and Argentina.
Money printing is not part of Petro’s official roadmap. A presidential campaign cannot promise future action that the central bank alone will take because the entity is independent of the state. However, some opponents feared that Petro might somehow override the bank’s authority to implement the measures.
As their first left-wing president, Petro’s populist rhetoric won the sympathy of the younger generation and a group of people who, amidst poverty and despair, waited a long time for change.
Sadly, we have already seen how such promises can be a way to manipulate the public and create an economic instability that hangs from a long chain of corruption and poorly managed projects. The Colombian presidential vote was a cry for help, but the people could get an empty hand in return.
All of these concerns lead us to the main character: Bitcoin.
Petro wants Bitcoin to replace cocaine
One of Petro’s main concerns is the country’s cocaine production. Colombia is the world’s largest producer of this drug. Basically, Petro has bankers, the oil and mining sector and the most powerful cocaine suppliers against it. This will not be an easy presidency.
But what helped him win?
Petro’s speech included issues often overlooked by other politicians in the country, one of which was Bitcoin.
His opponent, Rodolfo Hernandez, took a stand against advising people to buy bitcoin, celebrated Petro El Salvador’s bitcoin strategy and even offered the country to dig up bitcoin instead of producing cocaine. I don’t think it would be easy to take a conversion drug cartel.
Nevertheless, he noted that the Colombian energy matrix is already affected by hydroelectricity, which could help Bitcoin through renewable energy.
What if the Pacific coast took advantage of the steep waterfalls of rivers in the western mountains to produce all the energy along the coast and to replace cocaine with energy for cryptocurrencies?
Cryptocurrency is pure information and therefore energy”, Petro Tweet.
“W.The ownership of this new kind of energy associated with cryptocurrency computing could turn the community of Caesar, coal miners in the Caesar region, into black communities along the Colombian Pacific coast, and thus we would have a new world, “Petro said.
He also claimed to support some crypto ideologies: “Bitcoin removes the power to issue from states and removes currency signage from banks. It is the currency of a community based on the beliefs of those who deal with it, since it is based on a blockchain, trust is measured and increases, so is its power. “
But it seems to be in direct opposition to his repeated proposals to print money as a solution for the country’s economy.
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Opponents also like BTC
Some have hailed the president’s results, and others have feared them. Intellectuals, economists and even Bitcoins around the world continue to criticize his ambitious promise and hope that the next 4 years of his presidency will not be disastrous for the economy.
Some who oppose him and his ideology see his bitcoin rhetoric as political makeup, but strongly support the currency and are now recommending it more than ever, fearing that the country’s currency will soon begin to fall freely.
“Bitcoin The average citizen is going to be the only way out when his excessive money laundering policy destroys an already weak currency like the peso. Not to mention the impact of inflation, which is devastating for our little middle class in Colombia. ” Tweet Petro’s response.
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