In October 2021, El Salvador made headlines as the first country to accept Bitcoin as legal tender. Led by President Nayib Bukele, the initiative focuses on transforming the country’s economy, minimizing reliance on conventional financial systems and boosting development. While Bukele’s policies have drawn both praise and condemnation, the truth is that there is no turning back for him in his mission to integrate El Salvador into modern economic operations.
Bitcoin Editors: The Early Days in El Salvador
Both the US dollar, El Salvador’s official currency, and the inclusion of Bitcoin were envisioned as catalysts to bring financial meaning to Salvadoran citizens by increasing opportunities for foreign investment and financial inclusion. El Salvador’s economy is clearly in need of financial alternatives, as it is dominated by remittance inflows and a large unbanked population base. Statistics show that around 70% of Salvadorans do not have access to traditional banking. On the other hand, Bukele wanted to bring Bitcoin to his citizens so that they could choose a decentralized financial system that does not serve the purposes of traditional banking.

The government later developed this further with the introduction of the “Chivo Wallet”, where Salvadorans were exposed to bitcoin wallets through software and introduced to small pieces of bitcoin provided by the government to encourage people to use this innovative technology. However, the goal was not only to make people understand cryptocurrencies, but also to give people the ability to make and receive payments without the need for banks, with very low transaction costs.
Economic Opportunities
According to Bukele, the use of cryptocurrencies will boost economies and encourage investment, especially in remittances, which make up a large portion of the country’s GDP. One of the most manageable sectors when it comes to remittances is Salvadorans, who send billions of dollars every year. However, the amount of money families receive from relatives far from home is much less due to the heavy service costs associated with sending remittances. With the increased use of Bitcoin, the people of El Salvador could benefit by having more money go directly into people’s pockets due to the lower fees associated with sending money.
The long-term viability of Bukele’s vision will only be achieved if Bitcoin’s price volatility does not negatively impact El Salvador’s stability and, conversely, does not affect the success of what is envisioned as Bitcoin City as an investment hub. If Bukele’s experiment is successful, it could inspire other developing countries looking to operate in decentralized financial systems to try the same.

Conclusion
President Nayib Bukele’s endorsement of bitcoin and his version of the economic metamorphosis is unprecedented in national leadership and development. It is true that the risks are huge even at present one of the reasons being the the expectation is extremely high. But, the possible upside is transformational for El Salvador as a country making the world sit up and take notice with its digital finance offerings as a frontrunner. It is likely that as the world watches this experiment develop, Bukele who is currently holding the reigns will steer the narrative of how the world looks at cryptocurrency and whether it can accelerate economic growth for nations.

#ElSalvador #NayibBukele #BTC $BTC

#ElSalvador , the world's first state-owned bitcoin (BTC) hodler, is now seeing the fruits of a bold investment strategy proposed by the country's leadership. Recall that on November 18, 2022, when bitcoin cost only $16,700, President Nayib Bukele announced plans to buy 1 $BTC
every day. In 2 years, the country managed to accumulate 722 digital coins with an average price below $42,000. Now the authorities' total portfolio is valued at $450.23 million, and the profit since the given is an impressive $24.54 million, which is equivalent to 81% growth.

Getting the timing right was an important factor. At the time of the announcement of this decision, bitcoin was at a historic low for several years. A stable buying strategy helped diversify and mitigate risks, as the #BTC☀ price was showing volatile fluctuations. It is worth noting that this is not the first investment by the authorities of El Salvador. They actively started buying up digital coins in September 2021, when the exchange rate of the flagship cryptocurrency exceeded $50,000

As the bitcoin exchange rate rose and approached the $76,000 mark, El Salvador's portfolio is becoming an example of how smart investing can yield long-term results. However, critics have previously warned that investing in the cryptocurrency could expose the country's budget to significant financial risks, especially if the market fails to meet expectations.

Interestingly, BTC's positive momentum strengthens President Bukele's position and could serve as an example for other countries. Supporters of digital assets see El Salvador's success as a confirmation of cryptocurrency's sustainability as a store of value. Nevertheless, the volatility of the market is a reminder of the possible problems that could arise with a new drop in prices.
#BIOProtocol

In a series of strategic moves that underline its commitment to cryptocurrency, El Salvador continues to deepen its engagement with the digital currency market, particularly bitcoin {{BTC}}. President Nayib Bukele recently announced El Salvador's plan to buy one bitcoin every day, aiming to continue this practice until it becomes unaffordable with fiat currencies. This initiative has pushed the nation's bitcoin holdings to a substantial total of 5,690 BTC, valued at approximately $400 million.

This feature is part of CoinDesk’s “Future of Bitcoin” package published to coincide with the fourth Bitcoin “halving” in April 2024. Tatiana Koffman leads investment firm Moonwalker Capital, is the author of the popular financial newsletter.

In tandem with its cryptocurrency endeavors, El Salvador has made a bold statement in the global investment landscape by eliminating income tax for international investments and money transfers. This tax cut, from 30%-0%, is designed to attract foreign investors and boost economic growth.
The country's commitment to bitcoin was further highlighted this week as it transferred more than 5,000 BTC into a cold wallet. President Bukele disclosed that a significant portion of these assets, amounting to $400 million worth of bitcoin, has been moved to an offline device stored in a physical vault within the nation's territory. This move to secure the digital assets in a "Bitcoin piggy bank" marks a significant step in El Salvador's financial strategy, offering a higher level of security and signaling strong faith in the cryptocurrency's future.

The decision to make the transfer to a cold wallet came after El Salvador's bitcoin treasury swelled unexpectedly, nearly doubling its previously known stash. The country had been acquiring bitcoin through various means, including daily purchases, sales of passports, currency conversions for businesses, mining and government services. This approach has dramatically increased El Salvador's bitcoin holdings, which were believed to be less than 3,000 BTC before this revelation.
President Bukele's vision extends beyond merely accumulating bitcoin; he envisions transforming El Salvador into a wealthy nation through strategic investments and initiatives related to the digital currency. Despite criticisms and warnings from international bodies like the International Monetary Fund (IMF), El Salvador's commitment to its bitcoin strategy remains steadfast, with the nation showing no signs of divesting from the cryptocurrency.

El Salvador's bold foray into the world of bitcoin and its efforts to create a conducive environment for cryptocurrency investments reflect a significant shift in how nations perceive and engage with digital currencies. As the country continues its bitcoin acquisition program and enhances its cryptocurrency infrastructure, it sets a precedent for others to follow, potentially reshaping the global financial landscape in the process.
$BTC
#HotTrends #BTC #ElSalvador #ElSalvadorBitcoin #Write2Erarn

Based on survey done by La Prensa Grafica (LPG), #ElSalvador largest daily newspaper, President #NayibBukele obtained 91% approval from the local community.

Despite the fact that the media organization is known for its hostility to the Central American country's present political government, the leader has expressed uncertainty that the survey results may be much higher.

Bukele's Overwhelming Approval

El Salvador's President, who took office in June 2019, has one of the highest approval ratings in the world. In line with the previous surveys, around 85% of Salvadorans were satisfied with his leadership.

Based on the LPG study, less than 7% of the public disapproved of Bukele's governance, while 2.1% of survey participants did not respond.

Furthermore, the poll found that Bukele's popularity increased among young people who aspired to a higher economic level of living. Among of his most notable recent successes include managing the COVID-19 pandemic, improving the health sector, building the country's roadway infrastructure, and implementing educational reforms.

Apart from heavily investing in cryptocurrency, Bukele claims that #bitcoin has rebranded El Salvador's national image and aided tourism. The El Zonte beach location (also known as Bitcoin Beach) has attracted several Bitcoin maxis, including former Russia Today financial news hosts Max and Stacy Herbet, who are now consultants to President Bukele.