Part 3 of “El Salvador May Become the Richest Central American Country”

Pictured Above…..The Emir of Qatar with the President of El Salvador:  El Salvador abandoned the Dollar as a reserve currency in 2021 and began using Bitcoin. Using BTC should allow the country’s wealth to increase over time. Bitcoin is digital gold for El Salvador, creating confidence among some citizens and on the global stage, openly demonstrating that the country has money.  This is critical for El Salvador, as The World Bank has found that the region still faces high poverty rates that have doubled since 2019, along with a fragile fiscal position.  Even though El Salvador currently faces economic hardships, there are reasons the Government should continue to hold on to its Bitcoin.  For instance, selling the BTC the country possesses could lead to short-term financial gains, but it may also undermine confidence in El Salvador’s Bitcoin initiatives.  How would the hardcore Bitcoin community would look at El Salvador if President Bukele were to sell some of the country’s stash? His resolute ‘HODLing’ suggests Bukele is sending out a message. Bitcoin is not a means of speculation and trading for El Salvador because it is their reserve stock.  If they wanted to sell BTC, they would face problems since the country has officially abandoned the reserve currency in the form of the Dollar and Gold.   This would deplete their reserves. The government should not do this.  Regardless of what President Bukele eventually plans to do with the Government’s Bitcoin, El Salvador has started to set a positive example for other countries planning to incorporate the digital asset.  For instance, El Salvador’s long-anticipated Bitcoin bonds, also known as “Volcano Bonds” have reportedly received regulatory approval for launch this year. Once approved, El Salvador will be the first country in the world to leverage Bitcoin bonds.  I see the adoption of Bitcoin in El Salvador as a step towards financial freedom while Bitcoin advocates globally can now well and truly point to El Salvador as a success story.  Yet although the efforts made by President Bukele have been impressive, many of the country’s citizens still lack basic understanding of Bitcoin concepts.  The vast majority had used Bitcoin at some point in the past 3 months. However, when it came to basic concepts about Bitcoin such as what is the total number of Bitcoin, most had no answer.  It would be nice if the country had a deep understanding of Bitcoin and money.  Bitcoin as a technology and money is a paradigm shift, and as such, it requires time, effort, and a willingness to learn and understand.