El Salvador Reaffirms Commitment to Bitcoin Ahead of Elections
In an exclusive interview with Reuters, Vice President Felix Ulloa emphasized the El Salvadoran government’s unwavering dedication to Bitcoin, particularly in light of President Nayib Bukele’s potential second term.
Bitcoin as Legal Tender to Continue
Vice President Ulloa confirmed that Bitcoin’s status as legal tender in El Salvador will remain unchanged. This statement comes as the country negotiates a $1.3 billion loan with the International Monetary Fund (IMF), which has suggested that El Salvador reconsider its adoption of Bitcoin.
Firm Stance on Bitcoin
Ulloa expressed the government’s firm stance against reversing its decision on Bitcoin, citing the recent approval of US-listed exchange-traded funds (ETFs) that track BTC by the US Securities and Exchange Commission (SEC). He emphasized that the law will not only be maintained but also enjoys significant credibility worldwide.
Bitcoin Plans for 2024
If President Bukele and his party secure victory in the upcoming elections, they plan to launch Bitcoin-backed bonds known as “Volcano Bonds” in the first quarter of 2024. These bonds are part of a broader effort to utilize Bitcoin for economic development and are closely linked to the proposed Bitcoin City project, which involves using geothermal energy from volcanoes for BTC mining.
Bitcoin City and Investor Passports
The construction of Bitcoin City, a tax-free crypto hub proposed by President Bukele, remains a key priority. Additionally, the government intends to issue passports to investors who contribute $1 million equivalent in BTC, aiming to attract substantial investment into the country.
Overcoming Challenges
El Salvador faced international criticism for its decision to adopt BTC as legal tender, particularly from the IMF. However, Vice President Ulloa remains hopeful that the country will overcome challenges related to accessing IMF financing, noting that most of the package has already been agreed upon.
The Future of Bitcoin Integration
El Salvador’s steadfast approach to integrating Bitcoin into its financial system represents a significant milestone in the global narrative of digital currencies and their role in national economies. The outcome of the upcoming elections will play a vital role in shaping the future of these pioneering initiatives.
Hot Take: El Salvador Remains Committed to Bitcoin Despite IMF Concerns
As El Salvador prepares for its national elections, Vice President Felix Ulloa reaffirms the government’s commitment to Bitcoin. Despite concerns raised by the International Monetary Fund (IMF) and ongoing negotiations for a loan, El Salvador stands firm in maintaining BTC as legal tender. The recent approval of US-listed ETFs tracking BTC by the SEC further solidifies the government’s position. If President Bukele secures victory, plans to launch Bitcoin-backed bonds and develop Bitcoin City will move forward. These initiatives aim to leverage Bitcoin for economic growth and attract significant investment. El Salvador’s unwavering dedication to integrating Bitcoin into its financial system marks a significant chapter in the global adoption of digital currencies.
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