Topic: El Salvador has become the first country to make #Bitcoin legal tender! 🇸🇻 - page 8. (Read 38852 times)

This is sad news for me, although I know that the ES was neutral from the beginning regarding the war in Ukraine, now they have more than obviously chosen the side that caused terrible human suffering, destruction and death. If I ever had the desire to visit that country, it will now be on my black list, and all tourists should ask themselves if they want to go to a country that turns their heads from everything that is happening only because of the cheap politics that Bukele sells to the naive.

The country of El Salvador is currently best known for teaching its students all the facts about Bitcoin. And every student is eagerly flocking to learn Bitcoin, and they want everyone to be heavily involved with Bitcoin and holding by acquiring Bitcoin education. 

Currently, the government of El Salvador is taking all kinds of steps to teach about Bitcoin and the steps that need to be taken to hold it from start to finish. Learning about Bitcoin is such a joy and learning about it will be even more fun and the future is bright.

Students in 🇸🇻 El Salvador install a #Bitcoin BTC node in their classroom and are celebrated by the school band.

Video link. https://x.com/BitcoinNewsCom/status/1809615079228219427?t=IOgnINvFqpy4-IhsdzRoFw&s=19

JUST IN: Students in El Salvador are now learning about #Bitcoin    miners in the classroom 🇸🇻

The future is bright! 🙌

Source and Video link: https://x.com/BitcoinMagazine/status/1806106639168057594?t=5g8upD_Vnc2JaMPo7XE1KA&s=19

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This video is proof of that. I'm so happy and excited to see this video through social media, because these miners in El Salvador are getting a decent lesson. This education is Bitcoin education, which will be of great use in the far future, these students will definitely attract a lot of bright faces from Bitcoin in the future.

The Commission on Technology, Tourism and Investment of the Legislative Assembly of El Salvador received an initiative from the Ministry of Economy of El Salvador to create banks whose clients must own at least $250 thousand in capital.
 
  The Government of El Salvador has asked the Legislative Assembly to approve reform of the Banking Law to include legislation governing the establishment and operation of private investment banks in the country.
  In this initiative, the government of El Salvador defines private investment banks as “a critical international tool that promotes economic development and facilitates the channeling of financial resources to business and government projects that ultimately contribute to the growth of the country’s wealth.”
  The banking law, in force in the country since 1999, currently does not provide for regulation of the activities of banks of this type.   Thus, the reform consists of the inclusion of 14 articles and the reform of two other existing ones in order to establish how banks of this type will operate in the country.
  The initiative will regulate that banks are created as public limited liability companies with variable capital and a minimum of two shareholders.

  To operate, such a bank must have a minimum share capital equivalent to $50 million, “payable at the time of registration in legal tender.”

The Bank can carry out active and passive transactions, such as economic risk management, purchasing financial products, investment management, hedging and other derivative financial instruments.
 These transactions, as stated in proposed Section 183-G, may be carried out “in any legal tender.”
 In El Salvador, legal tender is the dollar, and as of 2021, bitcoin.  The law also provides that transactions can be carried out using stablecoins.

 Another feature that these banks will have is that their services will not be open to the entire population of El Salvador, but will be exclusive to clients who must previously be “qualified investors“.
 The proposal under Article 183-B states that natural or legal persons may be treated as such.  To do this, they must meet four requirements.
 The first three requirements are: have knowledge and experience about investments and/or financial transactions, be able to evaluate investment risks and results, and be able to accept the risks of transactions carried out independently and possible losses.

 This individual must also meet one of two requirements: first, have freely available assets worth $250 thousand.
 Another option is to have an asset of $500 million available.
 The MPs noted that the Government is “creating a mechanism to facilitate bitcoin transactions so that this bank can manage financial products, cover risks and provide loans.  This, if it makes any sense, is to create an intermediary financial figure for these investors in support of crypto assets and in digital assets."

source

Since this is a bill from the Government of El Salvador, I have no doubt that it will be approved by the Legislative Assembly of the country and come into force fairly soon. 
Of course, everything is calculated to attract investors in cryptocurrencies.

The other side of the benefits that El Salvador continues to achieve through diplomacy is using Bitcoin indirectly. The establishment of the El Salvador embassy will expand cooperation between the two and furthermore how communication channels will improve the economies of the two countries through the cooperation built. I believe bitcoin can have a relative impact on anyone and this shows another side of the meaning of investment and talking about profits.

Now El Salvador is no longer seen as an ordinary country because they have unique skills in building a country that develops more quickly. Of course this will be felt by the next generation after El Salvador reaches the stage of success in efforts to provide bitcoin for the public interest in the country.

On June 1, 2024, El Salvador's President Nayib Bukele and Vice President Felix Ulloa officially took office.  Their term of office will expire on May 31, 2029.

 And already on June 7, Felix Ulloa visited St. Petersburg Economic Forum  , where he had a meeting with Foreign Minister Lavrov.  Despite rather tense international relations in recent years, this fact suggests that contacts between countries are still developing somehow.  This is the first time such a high-ranking official from El Salvador has visited the Russian Federation since the establishment of bilateral diplomatic relations.
 Officials noted the strengthening of ties through the opening of the Russian embassy in El Salvador in response to the creation of the El Salvador embassy in Moscow.

 And although there were no specific commercial agreements, the very fact of such a visit indicates serious independence in the choice of international partners by the government of El Salvador.

You are absolutely right JJG, El Salvador cannot possibly be tempted by 1 or 2 times the profits from its bitcoin investment. Because of course these benefits do not have a significant impact on countries like El Salvador. So of course El Salvador will now not think about selling its Bitcoin assets, but will definitely continue to make regular purchases every day (DCA). In fact, President Bukele also openly said he would not sell bitcoin, even though currently unrealized profits have reached 40%.

Source: https://www.thestreet.com/crypto/markets/el-salvador-president-reveals-unrealized-profits-on-173-million-bitcoin-holdings

So it is clear that the country's leader will not sell his bitcoins for now and maybe for the next 5 or 10 years. Because if you look at what Bukele wrote, 1 BTC = 1 BTC. We can certainly understand that Bukele's goal in adopting bitcoin in El Salvador is not just to make a profit. In addition, El Salvador has made bitcoin a legal transaction tool in its country from the start. So if, for example, Bukele sells Bitcoin now, it will certainly slightly shake the initial intentions that Bukele built in El Salvador. Therefore, El Salvador certainly has very long prospects regarding its current investment or adoption of Bitcoin.

I doubt that El Salvador or anyone else buying bitcoin in the lower to mid 5-digits give too many shits about bitcoin merely getting to $100k. 

People talk about $100k as if it were some kind of a BIG number - and that is barely over 2x for El Salvador.. maybe 2.5x at most.. What is the BIG deal about 2.5x returns?

Bitcoin is still quite being undervalued as regards to what the price would be in the coming years when the majority of people, “The Billionaires” would have realized the need or importance of owing Bitcoin or when Bitcoin must have reached the market cap of Gold and the real estate, or Imagine the world's richest people begin to put 1% -3% of their money in Bitcoin and the price skyrockets, then El Salvador economy would be nowhere to be compared to the current largest economy of the world.

are they selling there Bitcoin anytime soon? I think the El Salvador’s Treasury Minister Alejandro Zelaya has made it plain that although they are in at least 40% profit at the moment, the plan of selling thier Bitcoin isn't even an option yet.
https://twitter.com/nayibbukele/status/1762867369217532125?t=cdjnCZNHqwZM7cnq6l6CEA&s=19

Note that El Salvador has other sources that serves to boast her economy and have major industries like the Food Processing industry; Beverages; Petroleum and chemicals Chemicals and also actively export Apparel: Knit, Plastics, and Paper which has been the index that plays the greater role in her economic stride and not Bitcoin. I think for el Salvador, it's more about having a reserve that's in Bitcoin that's going to benefit them in the long run than just looking at a 2 to 3 years effect on her economy.

Slowly, but steadily, they are moving to win. Imagine their economic in 2-3 years when BTC will be above $100k.

paper not in english,

can you explain a little more the possibility ?

In addition to the number of Bitcoins continuing to increase in El Salvador, I also read in a news item on coinvestasi.com that the El Salvador government is now providing public access to Bitcoin investment data via personalized mempools, as well as launching its own proof-of-reserve site. to monitor countries' BTC reserves using on-chain data. And the Salvadoran Bitcoin Treasury Office, a government-owned body tasked with managing all BTC-related projects, announced this new feature via their official Twitter account on May 12.

I think it is very good for all elements of society in that country to see the Bitcoin ownership that their country already has so that it can encourage people to continue to keep Bitcoin and not exchange it carelessly for ordinary goods that they can get using fiat. Because when Bitcoin has extraordinary value like that, of course every Bitcoin holder must be able to look after it well and will only use it in sectors that are more meaningful.

JUST IN: El Salvador now owns 5,770 #Bitcoin    worth over $402 million 🇸🇻here

This is politics, there will be a lot that will be done to make things worse. I think the opposition is also not completely neutral, they could have been followed by certain interests. They will give a bad impression on their political opponents. But I think smart people will look for the best data to find facts. Even today El Salvador is ranked 116th richest in the world.

Source: https://gfmag.com/data/richest-countries-in-the-world/

  Bukele's opposition press in El Salvador writes that during the 58 months of his rule, his country's national debt grew from $19,280.9 million to $30,173.2 million, since during his first presidential term there was an accumulation of a public debt of $10,892.34 million, according to the Central  Reserve Bank (BCR) at the end of March 2024.

  "" And in the end, it is this money that all citizens must pay for many years, through taxes collected by the treasury.""   
  According to official data, the total national debt at the end of the first quarter of this year is $20,257.27 million. 
The BCR has not yet released data for April.

  But I have reason to think that such information materials are propaganda and actions of the opposition to the president.  And such figures are misleading to ordinary readers of such articles.  The whole point is that everything is learned in comparison, and for comparison, I note that over the same time period, the US national debt grew in percentage terms even slightly more than that of El Salvador.

 And there are reasons for this:
  During the COVID-19 pandemic, the US government debt has increased sharply due to emergency measures aimed at supporting the economy in the face of widespread economic downturn in various industries, as well as high unemployment.
  Moreover, the US budget has been consistently deficit for the last two decades, so, most likely, the debt will continue to grow in the future.  Since 2013, it has already doubled. And in the future, until 2030, it will grow by approximately $5 billion every year.

  So everything is fine in El Salvador with government debt.

By becoming the first country capable of realizing mass bitcoin adoption, El Salvador is now the center of attention of many parties. The reason is that currently Argentina, as a large and developing country, is very interested in studying bitcoin adoption from El Salvador. This proves that currently El Salvador is the center of countries that want to follow in the same footsteps in adopting bitcoin. I think this is a positive thing that can be learned from El Salvador's journey in adopting bitcoin so far. Because initially many people underestimated and underestimated the adoption of bitcoin in El Salvador. However, now all parties who take this for granted will definitely be very surprised by the success experienced by El Salvador in adopting bitcoin.

Because after 2 years El Salvador announced that it officially adopted bitcoin as a legal means of payment in its country. Now El Salvador has experienced rapid progress. Like already having its own bitcoin mining using environmentally friendly natural energy, because it uses energy from volcanoes. Then thanks to bitcoin El Salvador also has an increase in the number of tourists coming. Then thanks to Bitcoin, El Salvador, which was previously a country that was not really known by many people, has now become a country that is really known to many people. And after El Salvador adopted Bitcoin, many parties began to want collaboration for business matters.

In essence, bitcoin brought success to El Salvador.

And besides that, bitcoin ownership in El Salvador is now increasing rapidly. which was previously below 20%, has now reached more than 40%.

Source: https://www.liputan6.com/amp/5540532/kepemilikan-bitcoin-el-salvador-melonjak-lebih-dari-40

This means that the struggle of the El Salvador government which has been emphasizing its citizens about bitcoin, such as teaching school children or students about bitcoin, is now also producing quite good results. It's a very satisfying result.

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Reference: https://www.liputan6.com/crypto/read/5608622/regulator-argentina-belajar-dari-el-salvador-jadikan-bitcoin-alat-pembayaran

Jack Dorsey-backed Bitcoin mining pool opens headquarters in El Salvador

Launched in late 2024, Ocean Mining has now established an international hub and headquarters in San Salvador, the capital city of El Salvador.
El Salvador is at the forefront of Bitcoin and Bitcoin mining adoption, and we believe Ocean's presence here will help advance these efforts here and create new opportunities in El Salvador and elsewhere.

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Scrolled through the thread and wanted to see what's going on in El Salvador and there you go, this is very interesting. I imagine they are the only country using geothermal energy from a volcano!

Too bad that there is no information about the cost of this process. It doesn't matter that much as they are running that power plant anyway and dedicate some of the energy to mining, meaning that maintenance is covered anyway.

Adding roughly $30 million in less than three years can turn into a big deal for them and if this mining doesn't mean there are shortages for people in El Salvador, then this is a great example of making use of natural energy to make some extra money. And if they can earn a couple of thousand additional BTC over the years, nobody can tell what this could one day mean for that country. El Salvador is not a huge economy.

It would still be some interesting information to know what amount of hardware they had to use and maintain to get an idea how profitable it was for the time being.