Draper: Bitcoin Will Make El Salvador Rich

In an interview with Anthony Pompliano, Draper talked about the benefits of this move, as well as governments turning to bitcoin and embracing the “Bitcoin economy.”

“There are only one or two countries in the world that are starting to do this. Because they do, they will go from the poorest countries in the world to possibly some of the richest countries in the next 40 years.”

“It’s all about the freedom and trust given to citizens,” he said, comparing El Salvador with Singapore and South Korea, countries that were once poor but are rapidly rising in the rankings. Alongside El Salvador, he named the Central African Republic a country that would see success thanks to BTC, and said Malta and Switzerland would also benefit greatly “for making bitcoin a part of their economy.”

Draper suggested that people want freedom and opportunity. According to him, these wishes can be realized through Bitcoin and ensure the success of a country.

“It tells you that you want more opportunities, you want more choices as a consumer, but you want more choices, not just for all your consumer goods, but also for which government you want to work with.

By using bitcoin, blockchain, smart contracts, and decentralized autonomous organizations (DAOs), new governments will arise that are completely virtual and you can be a part of them. At the same time, land-based governments will become more efficient.”

Draper also stated that Bitcoin has a decentralized nature, thus leading to a decentralized government unlike central governments (citing examples from Russia, China, and the USA) that often manage people’s lives in destructive ways.

Specifically, in the US, government and regulators have focused heavily on the crypto sector, especially after the recent collapse of the Terra/LUNA ecosystem and the FTX exchange.

“Good leaders back up and liberate their people who trust them. Bad leaders try to control everything, regulate it, tax it, and so on.”

Draper said he can understand taxation, but the U.S. government should also understand that a ton of money spent on 80,000 IRS representatives is wasted and that if there were a Bitcoin economy, everyone would automatically pay taxes.

However, he said there would be no point in taxing BTC as an asset, that BTC should be taxed on transactions, and that this would “probably pay for much more efficiently than what the government currently uses BTC for.”