El Salvador, a small nation in Latam that came into the spotlight due to President Nayib Bukele’s spearheaded adoption of bitcoin as legal tender, is uniquely positioned to pioneer bitcoin markets again, yet in a different manner.
The outcome of the recent U.S. presidential election, where Trump obtained a sound victory at the polls, brought another effect: the surge of interest in the properties of bitcoin and rumors about the possible implementation of a strategic bitcoin reserve. This has also raised eyebrows in the corporate world, where many companies have already turned to acquiring bitcoin as part of their reserves, with Microstrategy pioneering this action and others like Semler Scientific and Metaplanet following.
Recently, President Bukele’s cryptocurrency advisor Max Keiser floated a proposal that would allow El Salvador to become the Microstrategy of state nations. In social media, Keiser asked if El Salvador should issue debt to grow its bitcoin holdings, expanding its current “1 BTC a day” purchase program announced by Bukele in March. Most respondents answered positively.
Read more: Should El Salvador Follow Microstrategy’s Bitcoin Playbook? A High-Stakes Move
While this is no clear signal that such a program is being developed, as a cryptocurrency advisor Keiser might be testing the waters of public opinion regarding this development. The decision, if taken, could kickstart a new trend for developing nations wanting to add bitcoin to their coffers but lacking the economic means to do it on their own.
El Salvador, as a bitcoin trailblazer, has the regulatory framework and the will to make this work. The only unknown to be solved is whether there will be demand for a country-issued bitcoin collateralized debt instrument. But, if Microstrategy’s numbers apply at an international, greater scale, the answer is easy to infer: an undeniable yes.
