TL; DR Breakdown
- El Salvador plans to use Bitcoin proceedings to build about 20 schools to expand education in the area.
- Nayib Bukele, El Salvador’s president, confirms to his citizens that none of the tax money will go into the project.
The president of Central American country El Salvador kicks on an initiative meant to revamp the educational sector within the country. The government, which faced a lot of doubt for accepting Bitcoin as a legal tender, wishes to improve its economy and money transfer systems using digital assets.
The schools’ initiative aims to modernize the education system using its Bitcoin profits. It also assures El Salvador’s taxpayers that their money will not play a part in funding the project. The initiative is not the only step El Salvador is taking to improve its Bitcoin Trust.
The whole process is not without its challenges as the Trust faced several fraud issues. The schools’ project is one way President Bukele hopes to disperse any doubt that people may have in his intentions.
All the same, the country stands to benefit significantly from its Bitcoin investment as the coin continues to perform steadily in the crypto markets. Also, it is an excellent pathway against inflation, a growing problem in the traditional economy that strains people’s living standards.
Expanding its Bitcoin reserves
El Salvador’s decision to make Bitcoin a legal tender started in September when the president and Senate acquired 400 Bitcoins. It stands as the second currency in the country’s economy, working beside the USD. Recently, its president increased its reserve by 420 BTC, increasing the total holdings to 1 100 BTC.
The fraud claims surrounding the legal tender are connected to the Chivo wallet, raising questions among the community about the government’s trustworthiness. Being the country’s leading wallet service for transactions, it is understandable that the citizens have their worries.
However, the company Orcaex is working on introducing another wallet for the country to leverage. Furthermore, it expressed its hopes of joining the El Salvador Bitcoin industry, stating its belief in the country’s potential.
Following the COVID-19 global pandemic, both parties put any negotiations concerning the same issue on hold. Nonetheless, this stands as a perfect opportunity to get them back on track and contribute to the El Salvador crypto market.
El Salvador Bitcoin volcano mining
President Bukele recognizes the power implications that Bitcoin mining has on the energy sector. However, it is making necessary preparations to utilize volcanic energy to power the process. During an elaborate video, El Salvador’s president highlighted the new energy plant and BTC mining equipment being installed.
Not only is this plan a way to manage energy consumption during Bitcoin mining, but it is also a way to provide clean energy during the process.
Different financial entities worldwide have made it clear that El Salvador is making the wrong steps by introducing Bitcoin into its financial sector. Nonetheless, the country is not standing down from these steps. Also, the projects will be an eye-opener for citizens to clear the government’s name from Chivo wallets fraud implications.
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