President Tells People Of El Salvador To 'Enjoy Life' After Blowing $87 Mln Bitcoin

President Tells People Of El Salvador To 'Enjoy Life' After Blowing $87 Mln Bitcoin

2022-06-24 | Selina Mathew

President Tells People Of El Salvador To 'Enjoy Life' After Blowing $87 Mln Bitcoin

Introduction

El Salvador's President Nayib Bukele doesn't want your approval, advice, or criticism about his country's recent $87 million Bitcoin buy.

"We don't need your approval. We don't need your advice. We need money, and we're going to get it from you one way or another," he said in a video posted on Twitter on Sunday.

The investment will have a "profound impact" on the country and the world at large, he added in the clip.

Bukele has been an advocate of Bitcoin for quite some time. Last summer, he announced that he was moving forward with plans to make Bitcoin legal tender in El Salvador – a move that would make it the first country to accept cryptocurrency as currency.

It is unclear how much of the $87 million has already been invested into Bitcoin so far; however, this isn't the first time Bukele has made moves with crypto-assets.

 In October 2020, as part of his plan to make Bitcoin legal tender in El Salvador, he also purchased 100 Tesla Model 3s — worth around $6 million — using cryptocurrency.

The small Central American state is home to more than 6 million people; about 70 percent live below the poverty line and rely on remittances sent home by relatives living abroad to survive.

This dependency makes them vulnerable to fluctuations in exchange rates and conversion fees from remittance companies such as Western Union or MoneyGram

two costs that could be eluded if they were able to use cryptocurrency instead of U.S dollars or other fiat currencies as their primary means of payment within their own country and beyond its borders. 

El Salvador’s government has invested more than $87 million in Bitcoin – and Nayib Bukele, the country's president, is not a fan of cryptocurrency skeptics.

El Salvador's President Nayib Bukele has ordered his government to invest $87 million in cryptocurrency, saying that it will have a "profound impact" on the country and the world.

The president made his announcement at a press conference Tuesday where he was flanked by two men who were identified as being from an unnamed local blockchain company.

The pair then took questions from reporters about whether El Salvador is planning to create its own virtual currency or join any other existing ones like Bitcoin or Ethereum.

But they didn't answer those specific questions, instead telling people to enjoy life—which is probably pretty good advice for most people regardless of what happens with cryptocurrencies.

We don't need your approval. We don't need your advice. We need money, and we're going to get it from you one way or another," he added.

Nayib Bukele is the President of El Salvador, formerly a member of the FMLN party and mayor of San Salvador until 2019.

He was elected this past March after running on his socialist platform, promising to end corruption and poverty in the country—a promise that has not become reality just yet.

The investment in Bitcoin is seen by some as controversial since cryptocurrencies are volatile and unregulated, but advocates say it could work for El Salvador – which only recently surpassed China in its number of Bitcoin ATMs.

Bitcoin is a highly volatile currency that is not regulated by any governing body. It's also not a stable currency, and certainly not something you should invest in if you're trying to save money.

If you want to help out your family members in El Salvador, sending them bitcoin doesn't make sense either—it'll be worth less than when it was bought.

"There's never been a currency like Bitcoin that is completely digital and has no regulations, so it's hard to say how well it will work for a country," Bloomberg reported, adding that El Salvador could stand to benefit, given that 70 percent of its population doesn't have a bank account but does have a smartphone.

Bitcoin is not a fiat currency.

It's also not a cryptocurrency, even though it's often referred to as such. In fact, Bitcoin doesn't fit into any of the traditional categories of currencies:

 It's neither physical nor digital and cannot be regulated by a central authority like a government or bank because it was designed to operate independently from any sort of oversight.

However, you may find yourself using Bitcoin in place of other forms of payment when buying things online—and soon enough, there are likely going to be more places where you can spend your bitcoins than just Amazon and Overstock.com!

The move comes after Bukele announced last summer that he would make Bitcoin legal tender in his nation, where 70 percent of people live in poverty, making them reliant on remittances sent home by relatives living abroad to survive.

Bukele's announcement was met with widespread skepticism at the time and was seen as a desperate attempt by a government that has been wracked with corruption scandals and economic stagnation since it first opened its doors to foreign investment in 1903.

"The digital dollar, like the euro or any other fiat currency, just represents a debt of the issuing bank," wrote Bukele on Twitter last July.

The move comes after Bukele announced last summer that he would make Bitcoin legal tender in his nation, where 70 percent of people live in poverty, making them reliant on remittances sent home by relatives living abroad to survive.

Bukele said at the time that cryptocurrency was an alternative to traditional banking services and would help reduce transaction costs for users.

The president's office did not immediately respond to Newsweek's request for comment on Thursday night regarding how much time had passed between the initial announcement and implementation of such a program or how many people had participated in it so far.

Conclusion

"Bitcoin has tremendous potential for the people of El Salvador and for other countries around the world," Bukele said. "The dollar is not as stable as it once was, and Bitcoin offers an opportunity to build a more secure economy." Read More Cryptocurrency News

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