The adoption of bitcoin in El Salvador caused a stir. If some appreciated this project, others rather saw the fall of the government. After many months of ups and downs, the country exceeds all expectations and presents a most optimistic balance sheet.
Bitcoin (BTC) spearhead of the economy of El Salvador?
Many people have questioned El Salvador’s decision to make bitcoin (BTC) legal tender. If some of them recognize the main crypto as a means of payment, it is different when talking about official currency.
Despite the criticism, the country stood firm on its decision and the results speak for themselves. After an exponential drop in the price of bitcoin, El Salvador found itself in a bad position. However, things are not as bad as you think. According to Minister of Finances of El Salvador, the country has achieved financial inclusion thanks to bitcoin.
Indeed, the adoption of bitcoin has opened many doors to the territory. Not only has the tourism sector experienced a considerable leap forward, but El Salvador has also accumulated crypto projects. Between crypto mining and the issuance of a stablecoin pegged to the dollar, Nayib Bukele is determined to make his country a home for cryptocurrency traders and investors.
A risky but promising bet
Since September 2021, El Salvador has put its country’s economy back in the hands of bitcoin and so far nothing has shaken the confidence of the government. Indeed, several people believed that the crypto winter would destroy Bukele’s dreams. However, instead of feeling sorry for itself, the country bolstered its crypto portfolio by buying BTC at low prices.
The $105.6 million invested in this project is beginning to bear fruit. Note that El Salvador is the first country in the world to give legal tender to a cryptocurrency, followed by the Central African Republic. Taking into account the risks that bitcoin represents, we can now consider Nayib Bukele as a visionary.
The volatility of bitcoin makes it a very risky instrument. However, it also has many advantages that you must know how to exploit to achieve financial autonomy. El Salvador has experienced this and currently everything seems to be going well. At this point, can we say without a doubt that BTC is the solution for financial inclusion?
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