Bitcoin Gains Institutional Support in El Salvador
With President Nayib Bukele’s re-election date less than three months away, Bitcoin is experiencing increased institutional support within El Salvador. This growing support indicates a strong foundation for the country’s experiment with Bitcoin as legal tender.
Election Season in El Salvador
The Republic of El Salvador is currently in the midst of election season, with the actual vote for President scheduled for February 4, 2024. President Bukele has consistently maintained an overwhelming lead over his competitors in polling, despite questions surrounding his eligibility for re-election. As of November 2023, the courts have officially declared his candidacy valid, setting the stage for a potential second term. While Bukele has gained popularity domestically for his anti-gang measures, his international recognition stems from his campaign to establish Bitcoin as legal tender.
El Salvador's Bitcoin Experiment
In September 2021, El Salvador officially adopted Bitcoin as a valid currency, marking the beginning of an unprecedented experiment. This move was met with opposition from many global financial institutions, as it challenged the existing reliance on the US dollar as the sole legal tender. However, the adoption of Bitcoin offered various benefits, including the potential to streamline international remittances by eliminating traditional financial intermediaries.
Acceptance in the World Economy
Despite initial challenges, El Salvador's new economic model, driven by Bitcoin, is gaining acceptance in the global economy. In November, the nation's credit rating was upgraded by the S&P, citing efforts to manage debt obligations and maintain economic stability. Bitcoin has played a significant role in this stability, attracting increased tourism and foreign residents due to the ease of using the cryptocurrency in daily life.
Reluctance to Adopt Bitcoin
While Bitcoin has garnered a dedicated following, the mass adoption of the cryptocurrency in El Salvador has been met with some reluctance. President Bukele's reputation as a crimefighter has been a significant factor in his domestic popularity, potentially overshadowing the emphasis on Bitcoin. However, increasing institutional support is expected to prevent a decline in Bitcoin adoption.
Government Support and Private Investments
The government of El Salvador has actively supported the development of a domestic Bitcoin community by contributing to projects like the Lava Pool project. This initiative encourages local companies to engage in Bitcoin mining using renewable energy. Additionally, private firms are independently investing in Bitcoin adoption. For example, Distribuidora Morazán, the second-largest distributor of goods in El Salvador, has partnered with the wallet and API platform Blink to accept and promote Bitcoin among its 40,000 merchants.
Bitcoin ATM Upgrades
Bitcoin ATM providers Athena and Genesis Coin have announced plans to add Lightning Network functionality to Bitcoin ATMs across El Salvador. The Lightning Network enables faster and lower-fee transactions, making Bitcoin more accessible for small purchases. This upgrade aims to enhance the overall Bitcoin experience for Salvadorans.
El Salvador's Future with Bitcoin
El Salvador's Bitcoin experiment is poised to become an established economic institution. President Bukele's transformative efforts in his first term have laid a solid foundation, and with continued growth and support, the country could become a global model for Bitcoin adoption and innovation.
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement plans
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Legal – WSJ
Investing with gold or stocks
Investing in gold as an investment vehicle might seem like a very risky proposition these days. The reason behind this is that many people believe that gold is no longer profitable to invest in. This belief is based on the fact that gold prices are being driven down by global economic conditions. They feel that gold investment would cause them to lose money. There are many benefits to investing in gold. Here are some examples.
One of the oldest forms known of currency is gold. There are records of its use going back thousands of years. It is a valuable store of value that has been used by many people throughout the world. It's still used by countries like South Africa as a method of payment.
You must first decide how much you are willing and able to pay per gram to decide whether or not gold should be your investment. You must determine how much gold bullion you can afford per gram before you consider buying it. If you don’t know what the current market price is, you can always call a local jewelry store and ask them their opinion.
It's worth noting, however, that while gold prices have fallen recently the cost of producing gold is on the rise. Although the price of gold has dropped, production costs have not.
Another thing to remember when thinking about whether or not you should buy gold is the amount of gold you plan on purchasing. If you intend to only purchase enough gold to cover your wedding rings it may be a smart decision to not buy any gold. This is not a wise decision if you're looking to invest in long-term assets. Selling your gold at a higher value than what you bought can help you make money.
We hope you have gained a better understanding about gold as an investment tool. We strongly recommend that you research all available options before making any decisions. Only after doing so can you make an informed decision.
By: Landon Manning
Title: As El Salvador’s Bukele Approaches Re-Election, Bitcoin Entrenchment Deepens
Sourced From: bitcoinmagazine.com/el-salvador-bitcoin-news/el-salvador-bukele-election-bitcoin-deepens
Published Date: Mon, 13 Nov 2023 16:37:47 GMT