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El Salvador’s Bitcoin efforts over the past three years
El Salvador’s president, Nayib Bukele, was sworn in for a second term on June 1, in an event attended by pro-Bitcoin (BTC) supporters. The Bitcoin community reacted Bukele’s Swearing-in event reflecting on developments in the cryptocurrency market leader, Bitcoin, and how it can change a nation’s economic outlook.
Recent years have also seen criticism, especially from traditional financial circles. Most opponents of Bukele’s Bitcoin hub for El Salvador point to the volatility of cryptocurrencies, citing scenarios where huge losses can be experienced. Furthermore, regulatory differences and global hostilities of different jurisdictions are a cause for criticism.
Bukele turns El Salvador in favor of Bitcoin
Bukele became president in 2019 and made Bitcoin a legal tender in 2021. On September 7, 2021, the Bitcoin Law went into effect after being approved three months earlier by parliament, becoming the first country to recognize Bitcoin as a legal tender legal tender. Subsequently, the government increased its stake to 400 BTC and approved a $150 million Bitcoin fund to convert BTC into USD.
El Salvador currently holds 5,750 BTC, worth around $350 million, as the country’s president remains bullish on the asset. In March Bukele transferred assets worth $400 million to a
cold wallet be stored on its territory.
“We have decided to transfer a large portion of our #Bitcoin to a cold wallet and store it in a physical vault in our national territory. You can call it our first #Bitcoin piggy bank. It’s not much, but it’s honest work.”
The Bitcoin dream
Several cryptocurrency enthusiasts have lauded the slew of support Bitcoin has gotten so far in the country. Bukele’s Bitcoin strategy is multifaceted as it aims to increase financial participation, integrate unbanked citizens and stimulate foreign investment. This led to the investment in Bitcoin yielding gains as the price of the asset reached an all-time high above $73,000.
His move to integrate Bitcoin into the economy to foster economic stability and growth while reducing dependence on the dollar is hailed as a landmark effort. THE Argentine government is working with the country to address Bitcoin adoption among other related areas. Additionally, El Salvador has attracted several cryptocurrency companies to its jurisdiction.
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