In a comment, Nayib Bukele, the president of El Salvador, which became the first country to make bitcoin legal tender in September 2021, said his nation is not failing its bet on bitcoin, despite claims by mainstream media and rating agencies.
As you may know, the founder and CEO of Zap Solutions (a bitcoin payments startup utilizing the Lightning Network) announced Jack Mallers at $5).
During his presentation, an emotional Mallers presented a recorded video message from President Bukele and read a small passage from the proposed bill. Mallers further said that his company will open an innovation center in El Salvador with the help of Blockstream.
On June 9, 2021, this bill was passed by the Legislative Assembly (62 votes in favour, out of 84).
Then, on June 25, 2021, Reuters published a report stating that the President of El Salvador, Nayib Bukele, announced during a national address on June 24, 2021 that the “Bitcoin Law” will come into force on September 7 will come into force in 2021.
On September 6, 2021, President Bukele announced that his country had bought its first 200 bitcoins and plans to buy “many more.”
As of September 2021, El Salvador has made 11 bitcoin purchases, with the country estimated to have bought a total of 2,381 bitcoins. The last $BTC purchase occurred on June 30, 2022 when El Salvador bought 80 coins at an average price of $19,000.
Although some critics argue that El Salvador’s bitcoin experiment failed as the small Central American nation has unrealized losses on its bitcoin investments, there are Salvodrans who are very happy and proud that their country embarked on this journey Has.
Well, earlier today, Bitcoin Magazine published an op-ed by President Bukele, in which he spoke about the people criticizing El Salvador for betting on bitcoin, saying that despite all their doom tales, his country is doing quite well, and that if “El Salvador succeeds, many countries will follow”.
“…the most vocal critics, those who fear and pressurize us to reverse our decision, are the world’s powerful elites and the people who work for or benefit from them…
“Just think of the hundreds, if not thousands, of articles about how El Salvador’s economy was supposedly devastated because of its “Bitcoin game,” about how we are inevitably heading for default, that our economy has collapsed, and that our government is bankrupt… I’m sure most of you have seen this already, right? They’re all over. Every financial publication, every major news organization, every newspaper in the world, every rating agency and every international financial organization are saying the same thing, as if they were in a choir…
“Well, you just have to read their articles and listen to their “experts” saying that all of this happened after El Salvador lost around $50 million due to a sharp fall in the price of Bitcoin on exchanges. Since we don’t sell Bitcoins, this statement is obviously false… Yes, El Salvador is a relatively poor country, but in 2021 alone we produced $28 billion worth of products and services. To suggest that a loss of $50 million – less than 0.2% of our GDP – would destroy our country’s economy or even cause trouble is beyond stupid; it is enlightening…
“In 2021, our GDP increased by 10.3%, tourism revenue by 52%, employment by 7%, new businesses by 12%, exports by 17%, energy production by 19%, energy exports by 3,291% and internal revenue up 37%, all excluding tax increases. And this year the crime and homicide rate has fallen by 95%…
“If El Salvador succeeds, many countries will follow. If El Salvador somehow fails, which we oppose, no countries will follow.“
Featured image via Pixabay