Topic: El Salvador has become the first country to make #Bitcoin legal tender! 🇸🇻 - page 131. (Read 43185 times)

El Salvador buys more 100 bitcoin making its total holding of bitcoin as 1220. President Nayib Bukele is quite has undergone lots of criticism for making bitcoin legal tender. He is strong in his decision making use of every dip happening in the market. Now the country holds something around $66 million worth in bitcoins. Even yesterday Bank of England governor Andrew Bailey criticised for El Salvador's decision on bitcoin usage.

I figure there is an official track of what’s been spent on thses "buying the dip" sprees. Today’s is smaller than prior purchases, but they’ve added another 100 BTCs to their position, totalling 1,220 or so I believe.

See: https://twitter.com/nayibbukele/status/1464307422793715716

Theoretically, this is all coming from the initial 150M $ Trust that was set to provide liquidity to the Chivo System. It’s be interesting to know exactly how they are taking custody of these BTCs (I figure they have some sort of agreement with one of the Exchanges they use to support the pipes of the Chivo System – hopefully they have some robust agreement -> not sure where the keys are …).

I hope this is not the case, because it would be a real shame for the whole project to fail due to the connection with that company, although formally the cooperation was achieved with iFinex which is just another company owned by BitFinex. What is interesting is that this idea has been around for several months, and it was suggested by Mr. Samson - and we can assume (given the logo he is promoting) that he influenced who the other partner would be.

I know hehehe. Many people are calling him Samsung Mao as a joke for his extremist idealism on Bitcoin maximalism. His acceptance of Tether might have broken that idealism, however. He used to say any cryptocoin that is not bitcoin is a scam.

Would you speculate or suspect that Bukele chose to work with the hustlers behind Tether is because it would be very much easier to move money using Tether’s shadow banking connections than use the real banking system?

I should have an account with three bitcoins.

The man's real name is Samson, not Samsung - your thoughts seem to have been somewhere else when you wrote this post



I'm not familiar with his previous views on Bitcoin, but I'm not at all surprised that he wears the logo of that stablecoin, because people change for the better, but also for the worse. I also don’t like that the company behind USDT is involved in that project, but there is certainly a reason why Bukele chose just them and not someone else for the job.

I am presently shaking my head because Samsung is wearing a shirt with a Tether logo. Was he not one of those very loud maximalists who held the opinion strongly that everything that is not bitcoin is a scam? However, he is presently working with the most questionable group of people in the cryptospace.

What I am curious about this new bitcoin bond is what would be Tether’s part in this? Would this be another created chance for Tether to expand their balance sheet and hold the bonds as backing for USDT?

I believe that the 13% correspond to the current yield for El Salvador bonds for a 10 year window. The Volcano Bonds have a 6,5% floor annual yields, but since part of the amassed amount from the bond will be invested in bitcoin (500 M $, which is half of the total bond target), the bond will also be returning an additional yield based on BTC appreciation. I’ve read that Blockstream estimates that the annualized final interest rate could be in the 146% range (which is obviously a non-certainty).

In a sense, it’s a variable interest rate bond, with a floor of 6,5%, and a potential yield of way more through the bitcoin exposure, which means it’s something in between current conservative 13% 10 year bonds in El Salvador, and going full-fledged into bitcoin.


See:
https://www.coindesk.com/markets/2021/11/22/junk-rated-el-salvadors-bitcoin-bonds-look-explosive-think-volcano/

The CEO of Blockstream Samson Mou on Bloomberg TV talks about his participation in El Salvador's plans to build a "Bitcoin city" and issue the world's first sovereign bitcoin bonds, the maturity of which comes in 10 years, is 13 percent, he also spoke about the mechanism of repayment of bitcoin bonds, and about attracting investors to this project.

The President of El Salvador, Naib Bukele, did not agree with some of the recommendations of the IMF, which in particular recommended in its recent report to narrow the scope of the bitcoin law and strengthen regulation, and they also went even further and recommended that the Salvadoran authorities cancel state subsidies for Chivo and close the state bitcoin trust.

Bitcoin will make El Salvador great again.

Sure, it was a fine country even before bitcoin but know that they are not the richest people out there. Hopefully bitcoin will their biggest problem which is being poor btw and bring El Salvador into the league of developed countries.

I didn't do the math but If bitcoin can make another x10 from here, El Salvador would probably become as rich as the poorest European country which would be a pretty damn good start. Stay strong and hodl brothers and sisters.

The one billion USD will certainly come together quickly. But to build all the infrastructure, much more will have to be invested if they just want o build a city and not just a village. According to Bukele, the first bond for the city's incorporation will be issued next year.  I'm curious to see whether the idea will even be pursued by then. The resistance from abroad will certainly be immense.

The country of El Salvador has taken bitcoin seriously for several years and they even want to widely legalize bitcoin among its people so that normal bitcoin transactions can be carried out such as cash withdrawals at ATMs, and they even plan to make bitcoin atm's to make it easier for the people to do it. make transactions in cash through ATMs, the steps that have been taken by the country of El Salvador are very appropriate, especially for the survival of bitcoin in the long term

El Salvador has signed a deal with Blockstream and iFinex to place $1 billion worth of bitcoin bonds on the Liquid Network. Of the proceeds from the sale of bonds, it is planned to allocate $500 million for the development of energy infrastructure and mining BTC on geothermal volcanic energy, and another $ 00 million will go to the purchase of BTC for the state trust.

El Salvador also intends to adopt a law on government securities and grant a license to Bitfinex Securities to process the issue of bonds.
https://blog.blockstream.com/el-salvador-to-issue-1b-in-tokenized-bonds-on-the-liquid-network/


President Naib Bukele also announced the construction of Bitcoin City. To supply the city with energy, a geothermal power plant will be built, the capacity of which will be used for bitcoin mining. Bitcoin City will receive the status of a special economic zone in which taxes on income, property, capital gains and wages are not levied.

In El Salvador, bitcoin week ended on Friday, during which the annual LaBITConf on bitcoin and blockchain was held, many companies, from bitcoin ATM providers to cryptocurrency exchanges, set up stands around the Presidential Theater in the capital of El Salvador. Representatives of crypto exchanges and entrepreneurs could also communicate and take part in discussions at LaBITConf. And the Minister of Economy of El Salvador, Maria Luisa Hayem, said at the conference that the step of recognizing bitcoin as a means of payment puts her country at the forefront of technology.
https://www.bloomberg.com/news/articles/2021-11-19/el-salvador-s-bitcoin-week-draws-crypto-faithful-to-party-preach-btc?utm_medium=social&utm_source=twitter&cmpid=socialflow-twitter-business&utm_content=business&utm_campaign=socialflow-organic

the steps that have been taken by the country of El Salvador by adopting bitcoin widely in the country can at least have a fairly positive impact on the survival of bitcoin in the long term where they are really serious about adopting bitcoin widely and even the country of El Salvador has created bitcoin ATMs so that transactions can be carried out by the people of the country, with the adoption by the country of El Salvador we hope that bitcoin can return to its peak of glory as it had a few years before

the point is global recognition and a good approach to be able to introduce in this case is bitcoin is quite the right thing to do.
after that happens let people judge and find out more, regardless of whether they want to or not, reject or accept it back to each other.
but one thing is for sure when they have been introduced and still refuse. this is a big loss for him. because the adoption of btcoin is getting more and more and it's just a matter of time to get bitcoin clearly recognized.

JayJuanGee, sorry I'm late in answering this question. I have no reason to say that I have a lot of knowledge about the real condition happening in El Salvador regarding the legalization of bitcoin as a legal currency. I read some news about public protest there which may not be pure without political engagement between the government and the opposition. I can assume that this protest was carried out not only by the wishes of those who disagree with the legality of bitcoin, but that the current political opponent of the government may be able to form an opposition to this protest in the name of society.

The main purpose of adopting bitcoin as a legal currency in El Salvador is to reduce dependence on using other currencies such as USD for transaction between countries. There is a big benefit that government expect from this adoption which is that they can save a lot of transaction fees each year from citizen working in other countries like America.

Regarding taxes, I haven't gotten much information about it. But maybe it will be proposed soon considering it can help the country to increase its income, but this is just an assumption that may not be justified or wild speculation from me.

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Almost all new things decided by the government will invite public attention to support or reject, including the legality of bitcoin. So this may be the case of mass vaccination in all countries where resistance and protests are carried out due to lack of knowledge of what the government wants. But over time, it will gain a lot of support.

The President of El Salvador, Nayib Bukelele, promises to use the proceeds received from bitcoin to create schools in the country. The president's press secretary confirmed on Twitter that the president plans to create 20 new schools.

Seems like the Trust created to support the Bitcoin Law is a never-ending fountain of wealth … (until it’s not).

Whilst attending an event to lay the first stone of Chivo Pets (the pet hospital to be funded with the Trust’s benefits derived from Bitcoins rise in price), @Bukele announced that they’ve also now got "a few million" to build 20 fully equipped and modern schools in the country, also paid from the Trust.

Just as a reminder, the 150 M$ Trust is intended to give support to the Chivo System, facilitating the exchange between BTC and USD within the system. It therefore has an operational intent.
Now part of the USDs have allegedly been used to purchase more BTC, and since BTC has behaved favourably in terms of price increase, they consider they have a surplus amount over the 150 M$ bookkeeping of the fund. Some of this bookkeeping surplus is what allows them to justify taking USDs out of the fund, to pay for the Chivo Pets centre, and now for the 20 schools.

I either don’t have all the information, or this whole withdrawing business from the fund is rather risky. If BTC were to take a beat, the Trust’s bookkeeping could go well below the 150M $. I’d figure they’d pump more USD into it in this scenario, but that’s not how it should go. Let’s hope BTC just keeps rising and the above scenario doesn’t come into play…

See (Google translated from Spanish): https://diarioelsalvador-com.translate.goog/gobierno-de-nayib-bukele-construira-las-primeras-20-escuelas-con-ganancias-bitcoin/153350/?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=nui
(In Spanish) https://twitter.com/PresidenciaSV/status/1455365925016936451


Note: They've also extended for another 2 weeks the petrol promotion, rising the discount for paying with Chivo Wallet from 20 cent to 30 cents per gallon.
https://twitter.com/nayibbukele/status/1455273202045890571