El Salvador, a tiny country in Central America, has become a frequently mentioned name following its adoption of Bitcoin. The country’s government, which continues to increase Bitcoin adoption every day and signs new projects, has shed light on the country’s plans regarding Bitcoin through a comprehensive video publication.
Throughout the past year, the El Salvador administration has been the butt of jokes worldwide, yet it has continued to hold onto its Bitcoins with determination. Today, with the rise in the BTC price, the El Salvador government seems to be in a profitable position.
El Salvador’s Cryptocurrency Plans
Despite the potential for profit from selling the Bitcoins owned by the country’s administration, it is believed that the expected return will not be realized. The return on the investment made to date will only be an extra 7 million dollars.
In the promotional video published by the El Salvador government, there are extensive explanations about the country’s approach to Bitcoin, how new Bitcoins are acquired, how the country’s citizens perceive Bitcoin, and the country’s plans.
These explanations have been shared with the world in three points by the country’s government. The shared points are as follows:
- Following the addition of Bitcoin as a currency alongside the Dollar, thousands of BTC enthusiasts from around the world began flocking to the country. This influx is believed to have transformed into significant economic revenue. Moreover, the arrival of these individuals has diversified investment and business opportunities and contributed to the formation of a robust local economy. Bitcoin Beach within the country’s borders is a prime example of this.
- Despite being at the forefront of adoption, El Salvador’s citizens have already started using Bitcoin, referred to as the money of the future, and hundreds, if not thousands, continue to do so. More importantly, thousands of people without access to banking services have gained access through Bitcoin. It has also been observed that El Salvador’s citizens have saved millions of dollars in transaction fees during bank transfers.
- Through Bitcoin mining, the government is also creating additional sources of revenue for the country’s economy. To do this, the country is utilizing the geothermal energy of its volcanoes. The government appears to have resorted to this method to make the most of the emerging energy resources, which in turn minimizes Bitcoin mining costs.
Bitcoin’s Significance for the Country
Post-adoption, the government seems to complain about thousands of bad news stories and dozens of negative articles written about them by countries’ news sources. They note that this is more pronounced when the price drops. More importantly, perhaps mockingly, they do not shy away from asking, “what about when the price rises?”
The government has also clarified why it has not sold its Bitcoins to pay off debts, stating it is related to the country’s policy. They indicate that the strategy is to hold Bitcoin for the long term.
Highlighting countries’ economic policies, the government emphasizes that the purpose of acquiring Bitcoin is not just to make a profitable sale but to have a guarantee even in the midst of this crisis.
Moreover, the government points to a global economic future full of question marks managed by inflation, devaluation, and unrestrained money printing. Therefore, they believe El Salvador is in a more prepared position to face a global economic crisis. They also note that despite fluctuations in Bitcoin’s price, it has shown an upward trend since its inception.
Reminding of the past transaction of selling Bitcoin for pizza, the government states that since the transaction of buying 2 pizzas for 10,000 Bitcoin, BTC has increased by 1.4 million percent.
Contrary to experts who heavily criticized the Bitcoin adoption decision, it is emphasized that the El Salvador government does not think small; it has a long-term and comprehensive strategy that aims beyond the profits from trade. They reiterate that no sales have been made despite rising Bitcoin prices.
Bitcoin and Tether for Citizenship
In recent days, a historic agreement was signed between El Salvador and Tether, the issuer of the USDT stablecoin, announcing the start of a new program called “El Salvador Freedom Visa Adoption.” The basis of the program is that individuals can apply for citizenship using Bitcoin and Tether.
It was also announced that the program would be subject to a legal process. The most important point regarding the process is that applicants for this program will need to commit a deposit in Bitcoin or USDT.
For those who apply to the program and make progress in the process, it was announced that this deposit would later be included in the 1 million dollar payment required for the Freedom Visa and citizenship transition. Consequently, it is believed that the deposited funds will also benefit the country’s economy.
