- El Salvador’s president Nayib Bukele discloses profit and numerous benefits since legalizing Bitcoin as a legal tender in 2021.
- He said potential profits and financial inclusion fueled their Bitcoin move.
El Salvador became the first country to adopt Bitcoin (BTC) as legal tender in 2021 after Congress voted in favor of President Nayib Bukele’s proposal. Three years after this groundbreaking initiative, the country has witnessed incredible growth as its $135 million Bitcoin investment increased to $400 million in the public wallet. Bukele disclosed this in his recent interview with Time Magazine.
El Salvador invested $135 million. Now, we have $400 million in Bitcoin in the public wallet alone. We have done well as a government.
Our reports on this story showed that the International Monetary Fund (IMF) was highly against this decision. According to Bukele, the risks of Bitcoin cited in an IMF report have not materialized as El Salvador’s move has witnessed only benefits. Commenting on the threats and resistances faced amid this legalization, Bukele disclosed that the potential profits and financial inclusion were the principal factors that motivated him to defy orders and stick to the goals.
Regardless of these profits, El Salvador’s president admitted that the adoption of Bitcoin has fallen short of expectations. However, the country has the largest funds in the world.
We offered it as an option, and those who chose to use it have benefited from the rise in Bitcoin…there’s a lot of future in that currency [Bitcoin].
El Salvador’s Bitcoin Mining Program
The country’s commitment to the digital asset was seen recently when the president installed 300 processors to mine Bitcoin from the volcano. Out of the 102 megawatts (MW) produced, 1.5 MW was devoted to Bitcoin mining. As of May, about 474 Bitcoins had been mined, bringing the government’s total portfolio to about $354 million at that time. According to an official government entity “Bitcoin Office”, the government’s coffers had about 5,750 Bitcoins as of May.
In the past few months, US presidential candidate Donald Trump has doubled down on his campaign activities, with messages that largely align with El Salvador’s previous activities. In our recent publication, Trump announced that he would make the US the crypto center of the world.
Commenting on these, Bukele stated at the Conservative Political Action Conference (CPAC) that the US may be a little too late to “enter the party.” According to him, the US government does not rely on high taxes for funds. Instead, it focuses on Treasury bonds, which are mostly purchased by the Feds by printing money.
Comparing this to El Salvador, Bukele disclosed that Bitcoin’s impact has affected its tourism, investment, and branding. He also mentioned how the country has been providing certifications and instructions to 80,000 public servants on the digital asset. This was also confirmed by the director of the Bitcoin Office, Stacy Herbert.
El Salvador keeps winning because we keep building to the very highest standards. For three years now, the @bitcoinofficesv has been trailblazing the path upon which all other nations will follow. Along with creating @cuboplus, building a new K-8 Bitcoin Workbook & introducing… pic.twitter.com/IzoZ1XIccW— Stacy Herbert 🇸🇻🚀 (@stacyherbert) August 20, 2024
At press time, Bitcoin was trading at $59.3k, having surged by 1.6% in the last 24 hours.
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