- El Salvador partnered with Texas for its second Bitcoin Embassy.
- President Nayib Bukele announced plans to buy one BTC a day.
- El Salvador and Texas exchanged $1,244,636,983 last year.
The small Latin American country continues its Bitcoin journey with a brand new embassy in Texas. In a recent tweet, Milen Mayorga, El Salvadorโs Ambassador to the United States, revealed the move and pointed out that the new Bitcoin embassy will be focused on โthe expansion of commercial and economic exchange projects.โ
Indeed, Texas and El Salvador have engaged in substantial trading activity in 2022, transferring $1,244,636,983 between themselves. However, this is not the first time El Salvador has struck a deal with a pro-Bitcoin government. On October 28th, 2022, El Salvador established its first Bitcoin Embassy in Lugano, Switzerland, as part of Luganoโs Plan B.
Gracias al Secretario Joe Esparza @TXsecofstate por recibirnos. Nos compartiรณ el siguiente dato importante:
— Milena Mayorga (@MilenaMayorga) February 14, 2023
En el 2022, El Salvador y el Estado de Texas tuvo un intercambio comercial de $1,244,636,983. pic.twitter.com/VkZa36MNgz
IMF Admits Bitcoin Risks Havenโt Materialized
The partnership news between El Salvador and Texas comes just five days after the International Monetary Fund (IMF) published their annual report on El Salvadorโs progress.
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Surprisingly, the IMF admitted that adopting Bitcoin (BTC) as a legal tender has accelerated El Salvadorโs economic growth, also pointing out that โunprecedented reduction in crime, and strong remittances and tourism revenues have contributed to the robust activity and investment dynamics.โ
On the other hand, the yearly report by the IMF also emphasized that not a lot of local people in the small Latin American country use Bitcoin (BTC), while some have barely heard of it.
The IMF contemplates that Bitcoinโs use โcould grow given its legal tender status and new legislative reforms to encourage the use of crypto assets, including tokenized bonds (Digital Assets Law).โ In addition, the report concludes that โefforts are underway to develop citizensโ digital skills by partnering with fintech firms.โ
Ultimately, the Digital Assets Law has mostly to do with the Volcano bonds – tokenized sovereign bonds, which would enable foreign investors to invest in the Bitcoin Nation. El Salvadorโs government expects to raise over $1 billion with the Volcano bonds, which will invest in Bitcoin Cityโs infrastructure and promote education about the worldโs leading decentralized cryptocurrency.
June 2021, #ElSalvador ๐ธ๐ป will make #Bitcoin legal tender.
— Max Keiser - Bitcoin Advisor to Pres. Bukele ๐ธ๐ป (@maxkeiser) February 12, 2023
It was instantly clear to me that this opened a path to Volcano ๐ Bonds and an escape from the IMF & the global banking cartel.
โMax Keiser Was Right All Alongโ https://t.co/jpSeIS3yhn https://t.co/31eVLzPKAw
On the Flipside
- On November 18th, 2022, President Bukele adopted the DCA (Dollar Cost Average) strategy to purchase one Bitcoin (BTC) daily. Naturally, the controversial move was met with immense backlash on Twitter. The Bitcoin-loving Presidentโs crypto portfolio is already down by 48.8%, which equals $53 million in the red.
Why You Should Care
El Salvadorโs adoption of Bitcoin (BTC) as legal tender shows the positive impact Bitcoin can bring to society.
Learn more about the most groundbreaking adoption cases:
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