El Salvador adopted bitcoin as its national currency on 7 September 2021. The price of BTC was then around the $50,000 mark. In the meantime, the price has dropped significantly.
According to President Nayib Bukele, there is no reason to panic. Under his leadership, the Central American country has embarked on a unique route. El Salvador is set to become a bitcoin haven.
Great plans with great marketing. Bukele comes with advice: stop looking at the charts and live your life.
I see that some people are worried or anxious about the #Bitcoin market price.
My advice: stop looking at the graph and enjoy life. If you invested in #BTC your investment is safe and its value will immensely grow after the bear market.
Patience is the key.
— Nayib Bukele (@nayibbukele) June 19, 2022
Bitcoin in El Salvador
Embracing bitcoin is more than just some legislative proposals. Bukele sees in BTC an opportunity to grow in El Salvador. Think more investments, more tourism, and it can have the population with cheaper transactions.
El Salvador wants to raise a total of $1 billion through a government bond. It is a unique plan with bitcoin in the lead. $500 million will go to a direct bitcoin piggy bank, while the other half should go to the development of Bitcoin City and mining on a volcano. Nice plans, but, so far, the issuance of the government bond has been postponed indefinitely.
Bukele is not the only one from the top political leadership in El Salvador to get involved in the conversation surrounding bitcoin and the country. Finance minister, Alejandro Zelaya, responded earlier this week, “When they tell me that the fiscal risk for El Salvador because of bitcoin is very high, I can only laugh. The financial risk is extremely small.”
Zelaya also engages in creative accounting around bitcoin investments: “I’ve said it before: a supposed loss of 40 million dollars didn’t happen, because we didn’t sell anything.”
