Mexican billionaire Ricardo Salinas, the third-richest man in Mexico, shared his insights on why Bitcoin (BTC) should be considered as a viable alternative to traditional banks.

Bitcoin Adoption

During a Bitcoin interview conducted on a private jet with Bitcoin Magazine last year, Ricardo Salinas discussed his introduction to Bitcoin and the transformation of his mindset.

He mentioned:

"When I took this trade and it became very successful. It forced me to look into bitcoin in more detail when I finally understood what it meant. Which is finite issue, self-custody, unseizable. This is better than gold. As long as it has a market, at the end of the day it's an asset. For me, Bitcoin is an asset that you can trade."

Salinas believes that Bitcoin can serve as a safeguard against inflation and the devaluation of currency, which he claims is often orchestrated by financial institutions and governments without the knowledge or consent of the public.

Bitcoin Triumphs Traditional Banks

Salinas emphasised the importance of adopting Bitcoin as a store of value, asserting that traditional banks have a history of secretly eroding people's savings.

“The first thing that needs to happen is people need to realise that they’re being scammed, that they are being robbed by these crooks and the government, that’s what they are, they’re fraudsters. They commit fraud and they stand there and say ‘How are we doing monetary policy’ and they’re just stealing people blind,”

Salinas views Bitcoin as a pathway for individuals to seize command of their finances, liberated from the limitations imposed by conventional banking systems.

He advocates for people to adopt Bitcoin as a means of entering the global financial arena and engaging in the digital economy.

Salinas holds a belief in Bitcoin's distinctive quality of resistance to debasement, making it an appealing choice for individuals looking to safeguard their wealth.

He asserts that Bitcoin wields substantial power in countering the ascent of inflation taxes, a trend prevalent worldwide, particularly in areas such as Latin America.

With its resistance to taxation and immunity to devaluation, Bitcoin could act as a driving force against inflation taxes, not only within Latin America but on a global scale.

Contradicting Outcomes

Although Ricardo Salinas' theory portrays the adoption of Bitcoin in a positive light, its reception may not be uniform across all Latin American nations.

In September 2021, El Salvador adopted Bitcoin as its second legally recognised national currency, in hope to boost financial inclusion, investment, and economic development.

However, El Salvador has witnessed a plunged in its economic growth, with a persistently high deficit.

A 37-year-old resident Edgardo Acevedo commented,

“I don’t think anything has changed, except that the country is more recognised than before, but the economic life of Salvadorans remains the same or worse than a few years ago,”

Furthermore, the nation's debt-to-GDP ratio, a indicator for measuring a country's debt in relation to its economic output, is on the verge of reaching almost 87% this year, sparking concerns about El Salvador's capacity to meet its loan obligations.