A Year Past After El Salvador Adopted Bitcoin as Legal Tender, Btc Price Down Over 60%
- A recent report reveals that the country has postponed the issuance of its $1 billion Bitcoin bond due to security reasons.
- Tether Chief Technology Officer Paolo Ardoino, who has worked closely with El Salvador on the Bitcoin project, said the BTC bonds are likely to debut before the end of this year.
- The country has invested around $203 million in Bitcoin Beach to upgrade cycle paths, a new drainage system, pedestrian crossings, and 14 bridges.
El Salvador through President Nayib Bukele passed the Bitcoin bill in June 2021 and officially adopted the asset as legal tender alongside the United States dollar in September last year. A year down the line, the country is counting over $50 million in unrealized losses on its Bitcoin holding. Furthermore, Bitcoin price has dropped over 60 percent from its all-time high of around $69k.
Nevertheless, the country has made tremendous strides in Bitcoin adoption. Reportedly, Chivo wallet, the country’s official Bitcoin wallet, onboarded over 4 million new users in 45 days of introduction. Interestingly, the Chivo wallet onboarded approximately 70 percent of the country’s previously unbanked population.
Twelve Months of Bitcoin Usage in El-Salvador
Despite the cryptocurrency crash that has seen over $2 trillion in liquidity in the past year, El Salvador has continued with its plan of stashing more Bitcoin. Reportedly, the country holds over 2,000 Bitcoin acquired through mining and purchasing from the secondary market.
During the past twelve months of Bitcoin usage in El Salvador, the country has launched several projects aligned with more adoption. Notably, the country previously announced its Bitcoin bonds backed by volcano mining operations.
Nevertheless, a recent report reveals that the country has postponed the issuance of its $1 billion Bitcoin bond due to security reasons.
Tether Chief Technology Officer Paolo Ardoino, who has worked closely with El Salvador on the Bitcoin project, said the BTC bonds are likely to debut before the end of this year.
The country is committed to developing its infrastructure to improve the longstanding economic crisis. Reportedly, the country has made schools and hospitals through Bitcoin gains in the past.
Additionally, El Zonte, a beach in El Salvador that has been renamed “Bitcoin Beach” as a result of its acceptance of the cryptocurrency, will get infrastructure upgrades as part of a strategic plan that will be implemented by the government of El Salvador.
“El Zonte for many is known as Bitcoin Beach; we are going to fix an area of 15,000 square meters, where there will be a shopping center, parking, beach club, treatment plant, to revitalize the area,” Bukele previously noted.
Reportedly, the country has invested around $203 million in Bitcoin Beach to upgrade cycle paths, a new drainage system, pedestrian crossings, and 14 bridges.
Meanwhile, reports show that El Salvador is among the few countries that have recovered from the covid pandemic in the tourism industry.
Morena Valdez, who is the minister of tourism in El Salvador, indicated in April that the use of Bitcoin as legal money has contributed to the industry’s growth by 30 percent.
Side Notes
The adoption of Bitcoin as a legal tender in El Salvador has attracted mixed reactions from the global community. Although the country has gained notable support from the regional governments, global financial institutions including the IMF are against the move.
Nonetheless, the country inspired the Central African Republic, which became the second country to adopt Bitcoin as a legal tender.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
