The impact of the legalization of Bitcoin in El Salvador on the country’s economy is slowly becoming apparent. According to Salvadoran President Nayib Bukele, the country has paid off all of its debt and related interest. Banks and economists were predicting the opposite. Moreover, the DCA operation launched by Nayib Bukele in mid-November 2022 is already bearing fruit. Indeed, since El Salvador has been buying one bitcoin every day, the value of this asset has increased by more than 30%.
El Salvador is now debt-free, contrary to what the “experts” predicted
The decision to make Bitcoin a legal tender in El Salvador had been welcomed by the crypto community. This was not the case for several media outlets and economists who felt that Bitcoin was putting El Salvador’s economy at risk. Several of them even predicted that without an agreement with the International Monetary Fund (IMF), El Salvador will not be able to pay its debt due to the falling Bitcoin price.
Despite this harsh criticism, President Nayib Bukele has always defended Bitcoin. The facts end up proving him right. Indeed, the President of El Salvador announced that his country has paid all its debts valued at $800 million. All the interest generated by these debts has also been paid. Not surprisingly, the mainstream media and economists who predicted El Salvador’s default did not give this information any coverage.
El Salvador earns more than 30% on its bitcoins bought in DCA
As Bitcoin’s price plummeted in the wake of FTX’s collapse, President Nayib Bukele made a bold move. On November 17, he announced that his country would now buy 1 bitcoin every day.
This DCA purchase was welcomed by the Bitcoin community as a strategy to mitigate the effect of volatility on the country’s Bitcoin treasury. Nevertheless, some Bitcoin detractors had attacked Nayib Bukele, even filing a complaint against him.
More than 2 months after this decision, the facts finally proved Nayib Bukele right. Indeed, bitcoin was trading at around $16500 when El Salvador’s DCA was launched. Today, the value of bitcoin hovers around $23100. This represents a significant increase of over 30%.
Now that El Salvador has paid off its debt in full, it is clear that the media and “economic experts” have been lying to us about the economic health of this country. In reality, El Salvador is doing well and it’s all thanks to Bitcoin. The country has increased its GDP, tourism revenues, exports, energy production, internal revenues, etc. The country is reaping significant gains on its recent Bitcoin purchases. The trend could continue if the current market rally continues.
Nayib Bukele may not be perfect. Nonetheless, his status as a visionary leader is becoming increasingly clear. With the legalization of Bitcoin, Nayib is slowly lifting his country out of poverty and isolation. Do the media, banks and “experts” continue to ignore these achievements? Today yes, but not indefinitely for sure.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.
