- The purchase of BTC aligns with the country’s strategy to promote financial inclusion through blockchain technology.
- Tim Draper highlights that Bitcoin could help El Salvador achieve financial independence if BTC reaches higher prices.
- Tatiana Marroquín questions Bitcoin’s effectiveness, pointing out the lack of adoption and the associated costs.
El Salvador continues to strengthen its relationship with Bitcoin. According to a recent tweet, Max Keiser, Bitcoin advisor to the country, shared that President Nayib Bukele plans to acquire an additional 20,000 BTC for the national treasury.
Since the law was passed, El Salvador has been buying Bitcoin on a regular basis. The country now holds over 5,700 BTC, reflecting a substantial investment in the cryptocurrency.
The decision to purchase more Bitcoin aligns with El Salvador’s broader goal to use blockchain technology for financial inclusion and greater economic independence.
Several experts have shared their views on the development. Tim Draper, crypto investor, suggested that El Salvador’s Bitcoin reserves could be key to the country’s financial autonomy. Draper believes that if Bitcoin reaches $100,000, the country could use its holdings to settle its debts with the IMF.
He mentioned:
“El Salvador is on the right track with BTC. If it reaches $100K, they could pay off their loans and be financially independent”
Max Keiser, a strong supporter of Bitcoin, echoed this sentiment. In a tweet, Keiser stated:
“El Salvador is showing the world how it’s done. Buying BTC now is buying the future.”
His optimism comes from the belief that Bitcoin offers a better store of value compared to traditional currencies affected by inflation.
However, not everyone agrees. Tatiana Marroquín, an economist from El Salvador, has raised concerns about the plan. She pointed out that Bitcoin spending has not resulted in widespread adoption, calling it a financial risk that does not justify the expenses involved. Her main criticism is the lack of practical use of Bitcoin by the general population.
This coincides with recent agreements between El Salvador and other countries, such as Argentina, aimed at strengthening their digital asset industries. These agreements indicate that El Salvador may be working toward a long-term strategy for integrating Bitcoin into the global economy.
However, there are reports suggesting that the country might reconsider its position on Bitcoin while negotiating with the IMF, possibly making Bitcoin adoption optional.
