El Salvador, which broke new ground by accepting Bitcoin as legal currency, has set an example for other countries with this move and has recently been talked about with the agreement it made with the IMF.
But now it has come to the agenda with a possible visit to Russia.
According to CNN, El Salvador President Nayib Bukele is reportedly planning a trip to Russia in the new year and Bitcoin will be an important part of these talks.
It is not clear whether the meeting will take place, and experts said at an early stage that the visit would largely depend on the political landscape, particularly the U.S. stance on Russia under President-elect Donald Trump.
Alexander Ilyukhin, First Secretary of the Russian Embassy in Nicaragua and Head of the Office in El Salvador, confirmed that talks on the visit were ongoing, adding that both sides were optimistic about the meeting, but that approval would depend on several factors, especially the political climate after Trump’s possible return to power.
“US policies will play important role in Russia-El Salvador talks.”
A Russian diplomat also stated that one of the key topics of the Latin American leader’s meeting with Russian President Vladimir Putin will be Bitcoin (BTC).

#NayibBukele #Putin #Bitcoin #BTC #CryptoNews $BTC $ETH $XRP

El Salvador, the first country in the world to recognize Bitcoin as legal tender, has had to scale back its acceptance $BTC to meet the International Monetary Fund (IMF)'s conditions for a $3.5 billion loan.

Bitcoin Policy Changes

The Presidential Administration #NayibBukele has agreed with the IMF on the following key adjustments:
1. Stop Mandatory Acceptance of Bitcoin: Private businesses will no longer be required to support payments in BTC.

El Salvador's groundbreaking cryptocurrency experiment is entering a new phase as the nation finalizes a $1.4 billion agreement with the International Monetary Fund (IMF). This watershed moment marks a significant shift in how the Central American nation will manage its unique dual-currency system.
The most notable change comes to the pioneering Bitcoin Law of 2021, which initially mandated cryptocurrency acceptance across all businesses. Under the new framework, merchants will have the freedom to choose whether they accept Bitcoin payments, acknowledging the practical challenges many small businesses faced with the original requirement. This adjustment reflects a more nuanced understanding of the local economic landscape, where cash transactions still dominate daily commerce.
The government's role in cryptocurrency operations is also evolving. State involvement with the Chivo digital wallet system will be scaled back, and public sector activities in the Bitcoin sphere will see new limitations. In a move to strengthen traditional financial frameworks, tax obligations will now be exclusively payable in U.S. dollars, though this doesn't diminish the dollar's status as the country's official currency.
Despite these adjustments, President Nayib Bukele's administration maintains its conviction in Bitcoin's potential. Through the National Bitcoin Office, the government continues to build its cryptocurrency reserves, currently holding nearly 6,000 BTC valued at over $600 million. This persistent commitment suggests El Salvador isn't abandoning its cryptocurrency vision but rather refining its approach.
The path to this agreement wasn't straightforward. Four years of intense negotiations with the IMF reflected the complex balance between innovative financial policy and traditional economic stability. The international financial community watched closely as El Salvador navigated these uncharted waters, making it a fascinating case study in cryptocurrency adoption at the national level.
The new arrangement opens doors to broader financial support, potentially attracting an additional $2.1 billion from various international institutions. This expanded funding pool, totaling more than $3.5 billion, provides El Salvador with crucial resources for economic development and stability.
El Salvador's journey offers valuable insights into the real-world challenges of integrating cryptocurrency into a national economy. While some view the recent changes as a step back from the original vision, others see it as a necessary evolution toward a more sustainable and practical approach to cryptocurrency adoption.
As other nations contemplate their own cryptocurrency policies, El Salvador's experience provides rich lessons in balancing innovation with pragmatism. The country's ongoing experiment, though modified, continues to offer insights into the future of digital currency in national economics.
Time will tell whether these adjustments strengthen El Salvador's position in the global financial landscape. For now, the nation remains at the forefront of governmental cryptocurrency adoption, albeit with a more measured approach that better aligns with international financial norms and local economic realities.

#ElSalvador #Nayib #NayibBukele #Bukele #IMF $BTC

A potential discovery of gold in El Salvador, valued at up to $3 trillion, has sparked debates about lifting mining bans, ensuring sustainability, and the possibility of increased investments in bitcoin. This discovery could significantly reshape the nation’s economic trajectory.
Mining Ban and Calls for Its Repeal
El Salvador's President Nayib Bukele has highlighted the enormous potential of the country’s untapped gold reserves, estimated to be worth over $3 trillion. Bukele stated that if these reserves are fully explored and responsibly mined, they could finance critical projects such as job creation, infrastructure development, and economic advancement.
He proposed lifting the 2017 ban on metal mining in the country, calling it a barrier to utilizing the nation’s natural wealth. So far, only 4% of the mining areas have been explored, revealing an estimated 50 million ounces of gold valued at $131 billion, equivalent to around 380% of El Salvador's GDP. Bukele believes that full exploration could increase the reserves’ value to over $3 trillion, approximately 8,800% of the nation’s GDP.

El Salvador: Natural Wealth and Environmental Challenges
Bukele also emphasized that El Salvador’s location within the Pacific Ring of Fire gives it access to rich deposits of minerals, including gold, gallium, tantalum, and tin—essential materials for future industrial revolutions.
While some see this discovery as an economic opportunity, critics warn of potential environmental degradation. Bukele assures that mining will be conducted sustainably, though skepticism about the actual size of the gold reserves remains.
Impact on Bitcoin and Cryptocurrency Investments
As the first country in the world to adopt bitcoin as legal tender, El Salvador faces an intriguing dilemma. Pierre Rochard, Vice President of Research at Riot Platforms, pointed out that gold mining could significantly dilute above-ground gold reserves. Bitcoin, unlike gold, cannot be "diluted" due to its fixed supply.
President Bukele humorously remarked, "We’ll dilute that thing like there’s no tomorrow."
Prominent bitcoin advocate Max Keiser proposed monetizing the gold reserves and converting them into bitcoin. He argued that bitcoin is a more valuable long-term asset than gold. Keiser suggested using part of the gold to make massive bitcoin purchases while its price remains below $200,000. “Gold is rapidly losing its value compared to bitcoin,” Keiser added.
A Key Question for the Future
El Salvador stands at a crossroads: whether and how to mine its gold reserves and how to allocate potential revenue. Will the gold be used for direct investments into the national economy, or will El Salvador focus on its vision of becoming a cryptocurrency leader? Time will tell if these strategic decisions will transform the nation into an economic powerhouse.

#ElSalvadors , #BTC☀ , #GoldRush , #NayibBukele , #Bitcoin❗

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