El Salvador’s bitcoin roadmap might include a deeper integration of the crypto asset as part of its economic future. Felix Ulloa, Vice-President of El Salvador, recently stated that bitcoin might become a tool to liberate El Salvador from using fiat currencies, including the U.S. dollar.
Ulloa highlighted the role of bitcoin in the rebirth of the Salvadoran economy, reinforcing the link between crypto and the tourism industry. In October, he assessed that “tourism and the use of digital currencies go hand in hand and are a sign of that future and the rebirth of our country.”
Though I would say that the use of Bitcoin in El Salvador has not yet reached on a massive success level, there is no question that they have started to get freed from the shackles of both internal and external forces out to control this small country's destiny.
El Salvador is returning to global debt markets with a dual-tranche offer, including a bond that will pay investors a higher interest rate unless the government can win credit upgrades or a deal with the International Monetary Fund.
This will pay investors 0.25% for the next 18 months. After that, this rate will jump to 4% for the rest of the bond's life, unless El Salvador has met one of two conditions. Either it must agree a new deal with the International Monetary Fund, or it must be upgraded from B-/CCC+ to B/B.
Guatemala 4.1% 3.5%
Panama 10.8% 5.1%
Honduras 4% 3.2%
Salvador 2.6% 2.7%
Nicaragua 3.8% 3.1%
Costa Rica 4.6% 4.1%
Belize 8.7% 4.2%
El Salvador adopted the U.S. dollar in 2020,It was 2001,
Though I would say that the use of Bitcoin in El Salvador has not yet reached on a massive success level, there is no question that they have started to get freed from the shackles of both internal and external forces out to control this small country's destiny.You are right it was not a massive success for El Salvador, I think it would be massive if foreigners from all around the world would take it as a crypto-friendly hub and then they might invest in good projects there as well. It would only be possible if the developers of El Salvador would have some investment opportunity for foreigners like some good project.
The problem with using BTC as a national currency is its volatility and I don't see how any country could function in a way that has BTC as its only currency.I think you're right, the volatility of Bitcoin won't allow any country to use it as its main currency because in bear market Bitcoin loses its value while in bull market it gains value.
You are right it was not a massive success for El Salvador, I think it would be massive if foreigners from all around the world would take it as a crypto-friendly hub and then they might invest in good projects there as well. It would only be possible if the developers of El Salvador would have some investment opportunity for foreigners like some good project.
I am sure El Salvador is already thinking along that line when they saw some good success with its tourism with the use of cryptocurrency and I think they can start in there and build more on that. I understand that the government of Nayib Bukele has many plans on the table and are just waiting for implementations including that grand plan to use power coming from a volcano or geothermal energy for miners to come to El Salvador which can be opening more opportunities for the country to enjoy. As it is, managing a country even a small one can be a challenging task and for sure there will be ups and downs and of course there will be others who will not agree with the government and the things it is doing. At the end of the day, what is important is that the government is working for the people and not the interest of external forces.Yep, they are thinking along this line as well, I just read there six projects and three of them are already in progress and made them some benefit. I liked there project of Volcano mining, which is cheap and yeah it will really attract foreigners to spend money in this country to set up their own rigs. If governments allowed it. Out of these six projects, one is Bitcoin Citizenship, they are asking for $1 Million in BTC to give you lifetime of residency in El Salvador, I think if we see the bigger picture.
Though I would say that the use of Bitcoin in El Salvador has not yet reached on a massive success level, there is no question that they have started to get freed from the shackles of both internal and external forces out to control this small country's destiny.You are right it was not a massive success for El Salvador, I think it would be massive if foreigners from all around the world would take it as a crypto-friendly hub and then they might invest in good projects there as well. It would only be possible if the developers of El Salvador would have some investment opportunity for foreigners like some good project.
As a crypto-friendly country, investors would happily invest in it. Overall, Speaking od the economic situation, I hope it will not change for the country again, and even if it changes the country have to diversify their investments so the economy won't get affected that much. We all know market is highly volatile.
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I am then hoping that as years go by, we can witness the many advantages of using Bitcoin as a national currency in El Salvador. Do you see a great future of Bitcoin in El Salvador say within 5 or 10 years from now or do you see a great future of Bitcoin but without El Salvador on the scene?
It depends on what kind of investments though, if it will be bitcoin mining could be good but the government will have to subsidized the electricity and I'm not sure how El Salvador capacity to supply Bitcoin miners or if they themselves, the government has the total monopoly of bitcoin mining.That's the big issue, no one would want only one government to be involved or own the entire project of providing cheaper electricity to BTC miners. But if we broad our search, then we will find that almost in all over the world, every single cheap electricity program owner is one government or one entity. So this don't make a big difference, its just a small limitation with which we have to compromise. And they are not just going to monopoly the whole thing of cheap electricity for some bucks while in the long run they can get more.
And still we have to think for the long term, yeah, Bukele could have won his re-election, but for sure he can't stay that long as he will be a dictator. Unless the one that will run the country next is under his political affiliations, then Bitcoin for them is still going to be in the gray area as for now it is being attached to who is going to be the next and future President of the country.That's a good point as well, if the opposition parties in the countries are most concerned about the overall country progress instead of going after the presidential seat with all of there efforts then its a good place for investors otherwise not.
It depends on what kind of investments though, if it will be bitcoin mining could be good but the government will have to subsidized the electricity and I'm not sure how El Salvador capacity to supply Bitcoin miners or if they themselves, the government has the total monopoly of bitcoin mining.That's the big issue, no one would want only one government to be involved or own the entire project of providing cheaper electricity to BTC miners. But if we broad our search, then we will find that almost in all over the world, every single cheap electricity program owner is one government or one entity. So this don't make a big difference, its just a small limitation with which we have to compromise. And they are not just going to monopoly the whole thing of cheap electricity for some bucks while in the long run they can get more.
I am talking about there volcano electricity plant providing cheap electricity for mining.
With nominal project CAPEX of roughly US$1 billion, the project is El Salvador’s ‘largest ever foreign direct investments in El Salvador’, Invenergy said in a statement announcing the project’s close on financing in December 2019.
Its capacity is designed to meet around 30 pct of the country’s energy demand.
The project’s legal advisers specify the project comprises the power plant, FSRU (permanently moored through a modified spread mooring system), subsea pipeline and a 44-km, 230-kilovolt transmission line and related substations to connect the power plant to El Salvador’s electrical grid.
Yes, Dear, if we see El Salvador is very bullish on Bitcoin, where once i have read a news where El Salvador President announced that the government will keep buying bitcoin until it is affordable or they have sufficient fiat to buy bitcoin, and from these we can get an idea of how much El Salvador is bullish on Bitcoin. This thing encourages other investors to invest in their country and many are interested to hold the nationality of El Salvador Especially Crypto Lovers.They also introduced a plan for nationality as well which will require a person to give them $1 million dollar in BTC form to get permanent nationality of that country. I think $1 million is a lot of money because in some countries you work on the basis of a work visa or there might be some other factors and in the end after spending so many years you get a green card from the country means nationality. I might have missed some points but I can say for sure that none of the tier 1 countries would require a person to give them $1 million to get permanent nationality CMIIW.
Besides this, i have seen some videos on the Social platform where kids are paying their food bills using Bitcoin Payment method and this thing also promotes the adoption of the bitcoin around the world on social platform. Many may inspire with this idea and on the same side if we focus on another point which is Bitcoin is becoming more adoptable in America also as President Trump also supporting this at that time so we may see Good days of Crypto very soon. All depends!Some people might not agree with these kids for spending BTC on food or regular day-to-day uses. Because I have seen most of people prefer to take BTC as an asset and they don't want to use it as a currency for day-to-day uses. But some people are using it what's your take on this? Is this good for these kids to pay with BTC for their food?
They also introduced a plan for nationality as well which will require a person to give them $1 million dollar in BTC form to get permanent nationality of that country. I think $1 million is a lot of money because in some countries you work on the basis of a work visa or there might be some other factors and in the end after spending so many years you get a green card from the country means nationality. I might have missed some points but I can say for sure that none of the tier 1 countries would require a person to give them $1 million to get permanent nationality CMIIW.
Some people might not agree with these kids for spending BTC on food or regular day-to-day uses. Because I have seen most of people prefer to take BTC as an asset and they don't want to use it as a currency for day-to-day uses. But some people are using it what's your take on this? Is this good for these kids to pay with BTC for their food?