Long criticized for its policy in favor of Bitcoin, El Salvador is redefining the rules of global finance.
Nayib Bukele has allowed his country to own nearly 5,932 bitcoins, valued at more than $533 million. Compared to the purchase price, this represents a surplus of more than 100%. Nothing was won for the country that has suffered numerous attacks from the International Monetary Fund. The country now has a net profit of $280,000,000. With low-value local economies globally, ownership of Bitcoin by small governments provides them with a strategic reserve to deal with hard times.
This successful example could be of interest to other countries to make the same type of reserve in Bitcoin. The new administration in the US could follow suit. On a global scale, about ten nations have seriously considered setting up the same mechanism:
India
Nigeria
Vietman
USA
Ukraine
Philippines
Indonesia
Pakistan
Brazil
Thailand
El Salvador wants to go much further since in 2021, the country will announce its intention to create Bitcoin City. A city based on cryptocurrency mining using geothermal energy. This is still a world first although since that announcement, several companies have announced their intention to use the renewable energy production variations to mine cryptocurrency. This is the case in several countries in northern Europe.
