Both parties continue the negotiations for the granting of a loan. Forty days after its adoption, bitcoin has already reported profits to the Salvadoran State.
The government of El Salvador is in conversations with the International Monetary Fund to access a loan of 1.3 billion dollars. Given the distrust of the entity regarding the adoption of bitcoin (BTC) as a legal currency in the nation, the president of the Salvadoran Central Bank clarified that the cryptocurrency would bring many benefits.
The entity headed by Kristalina Georgieva does not trust the potential benefits of bitcoin and considers that crypto-assets can bring significant risks at a macroeconomic, financial, and legal level.
However, the country led by Nayib Bukele has the conviction to change that position. For this reason, it remains firm in its project of requesting international financing to achieve the government’s social programs.
In this context, the president of the Central Bank of El Salvador, Douglas Rodríguez, clarified that the questioned adoption of bitcoin as a legal currency would not be an obstacle, but quite the opposite.
According to an interview reported by Bloomberg, the official stated that the cryptocurrency would go from being seen as a speculative asset to a legal means of payment.
The IMF will issue its most recent report on El Salvador’s economy and finances in November. This report could bring many benefits to the ongoing negotiations or delay a resolution even further.
El Salvador Already Made Money with Bitcoin
In addition to ratifying bitcoin as a currency in the country, Rodríguez also assured that the cryptocurrency created by Satoshi Nakamoto would allow substantial growth of the national economy than the one expected by the bank, that is, 9% for this year.
In October, the country highlighted an oversupply in the FIDEBITCOIN trust of at least USD 4 million. One month after the activation of the Bitcoin Law.
This FIDEBITCOIN trust met its creation to grant more liquidity to citizens who desire to exchange cryptocurrencies for dollars.
On the other hand, the President of El Salvador, Nayib Bukele, recently revealed the construction of a veterinary hospital. The State had to use profits belonging to the rise in the price of bitcoin (BTC) to the FIDEBITCOIN trust.
This trust of USD 150 million brings liquidity for the conversion between BTC and US dollars to the users of the Chivo wallet.
On the other hand, from that trust came the money for the USD 30 bonus in bitcoin that each user of the Chivo application acquired.
According to president Bukele, The veterinary hospital would grant daily 384 consultations, 128 emergencies, 64 surgeries, 63 hospitalizations, 128 rehabilitations, 32 X-ray studies, and 32 CT scans.
The dog grooming service also got included in the list, with a capacity to attend at least 64 services per day. Bukele revealed the information with a video that shows what the veterinary hospital would look like once they finish it.
By: Jenson Nuñez
