Posted by Xoken.org – One of the smallest and most populous countries in Central America, El Salvador is predicted to become one of the richest countries in the world due to its Bitcoin holdings. The country became the first country in the world to accept Bitcoin as legal tender in September 2021.
Then, starting November 16 2022, El Salvador President Nayib Bukele announced that the government would start buying 1 Bitcoin per day.
Although Bukele’s decision received criticism, it is reported that Bitcoin held by the El Salvador government consisting of more than 2,000 BTC is now worth more than USD 150 million or the equivalent of IDR 2.3 trillion (assuming an exchange rate of IDR 15,518 per US dollar).
El Salvador Could Become One of the Richest Countries
Due to the current rise in Bitcoin prices and El Salvador’s Bitcoin holdings industry experts predict El Salvador will become one of the richest countries in the world.
Silicon Valley-based Venture Capitalist Tim Draper recently stated on the Web3 Deep Dive podcast that El Salvador is developing into an innovative country, and said the region will soon become one of the most attractive places in the world to live.
“Maybe in 30 or 40 years, El Salvador will go from being the poorest and most crime-ridden country, to being one of the richest and most innovative countries in the world, just in that time. “This is just because they use Bitcoin,” said Draper, quoted from Cryptonews, Tuesday (12/3/2024).
Draper further indicated that if Bitcoin reached USD 100,000 or the equivalent of IDR 1.5 billion, El Salvador might be able to pay off its loan to the International Monetary Fund (IMF).
In line with this, Alexander Mamasidikov, Founder and CEO of CrossFi a platform focused on bridging traditional banking with blockchain said he believes El Salvador will soon be financially independent.
“This will allow the country to focus fully on its internal tasks, which are the most important thing in our modern world,” Mamasidikov said.
El Salvador Sets an Example for Other Countries
Regardless of what President Bukele ultimately does with the government’s Bitcoin, El Salvador has begun to set a positive example for other countries planning to incorporate the digital asset.
For example, El Salvador’s long-awaited Bitcoin bonds, also known as “Volcano Bonds,” have reportedly received regulatory approval to launch this year. Once approved, El Salvador will be the first country in the world to utilize Bitcoin bonds.
“Personally, 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,” said Mamasidikov.
Although the efforts made by President Bukele are impressive, many of the country’s citizens still lack a basic understanding of the concept of Bitcoin.