El Salvador does not have a budget as affluent as that of the United States, but it knows how to set an example for the leaders of this world. If the latter are slow to adopt bitcoin as legal tender, the local government has taken the plunge first. Now that the cryptocurrency market is sinking into the red, Nayib Bukele is going to the rescue of struggling players.
Nayib Bukele will help DeFi platforms
Bitcoin Magazine recently covered a press conference in which Nayib Bukele highlighted accompanying measures against the backdrop of bear market. Concerned about the future of Salvadoran DeFi platforms, he offered to actually help them.
Thus, a recovery plan will soon be launched for local loan companies. This plan will include measures to ensure that they continue to operate at full capacity, or at least that they avoid payment defaults.
If necessary, the Bukele government will not hesitate to create a fund to bail out their cash.
How fascinating is this Nayib Bukele! Because not only does he continue to pledge the state coffers of bitcoin, 2,381 BTC in total, but also wants to set an example for anyone who wants to follow in his footsteps.
Stacy Herbert has found nothing better than to side with her.
A wink for Salvadoran SMEs
Often we point the finger at the ostrich policy led by El Salvador against the backdrop of an idyll with bitcoin. From here, we imagine a whole army of skeptics in full conclave to find anti-bicoin and anti-Bukele arguments. However, the world no longer hesitates to attribute to the Salvadoran president the title of the first lawyer of bitcoin. Why doesn’t he deserve it?
To prove that the legalization of bitcoin by El Salvador was not done on a whim, the country decided to carry out many projects related to cryptocurrencies. Among other things, we can mention the establishment of the Casa del Bitcion to democratize this new asset, and also Bitcoin City.
In addition, it is worth mentioning a life-saving action carried out by the same government with regard to SMEs. As recently as January, he decided to form a $10 million cryptocurrency package for lending platform Acumen. Thanks to this, small and medium-sized businesses in the country will be able to take out cryptocurrency loans from the first 1er quarter of 2022.
Coindesk clarified at the time that Acumen, based in Solana, will work closely with the National Commission for Micro and Small Enterprises of El Salvador (Conamype) on occasion. The latter will indeed ensure the allocation of financing to informal entrepreneurs and local self-employed workers.
Decentralized finance (DeFi) in its quintessence!
Certainly, these economic actors, estimated at 86% in the country, had welcomed the idea with arms swings. Because the existing offers showed annual interest rates of up to 2,300%.
How greedy the Salvadoran lenders are! Fortunately, Nayib Bukele is a great visionary, to the point of developing new alternatives to SMEs in the country. Now that lenders are struggling, due to the crisis in the crypto market, he wants to reach out to them too. Who knows if it’s the right profile that makes a good president for our country.
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