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.

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