Nayib Bukele, President of the Central American nation El Salvador, is going up in popularity among Bitcoiners all over the world. The main reason behind this massive followership is the realistic remarks about Bitcoin adoption and related services. The president of the small nation that is struggling with economic troubles seems to be making an important shift in the region towards making progress and setting a new example.
El Salvador has opted out of its legal tender and adopted the US dollar a few years ago due to the increasing inflation rates in the region. However, the recent rounds of massive money printing and huge stimulus checks come with only downsides for the place. While the benefits of the new money do not apply to the region, the small country is left with the devaluating fiat and risk of increasing inflation. Bukele claims that the Bitcoin system is a perfect solution, and it is massive at present, and it would become a huge success in the future.
Nayib Bukele Claims that Bitcoin is the Best Economic Booster for a Nation where 70% of People do not have a Bank Account
Nayib Bukele has presented solid use cases for Bitcoin that could empower the locals and pave for economic patching in the region. He claimed that with the help of Bitcoin, it would be possible to perform remittance without wasting a major chunk of money in transaction charges. Bukele claimed earlier that as much as 20% of foreign income goes to fiat transfer services like Western Union and others every year.
He further argued that Bitcoin acceptance as legal tender would also encourage more tourists to make a round of the country and spend their money. It might not set off complete independence from the influence of United States Central Banks. However, Bitcoin legal tender would help gain up a significant amount of financial independence. On the other hand, it could be a great option for the 70% population with no real bank account.
Bukele wants to Finance a Mega Project in the Region that would be Powered by Income Created with Bitcoin Mining
The revolutionary geothermal mining plans from Salvador are no secret. According to President Bukele, volcanoes are a natural and sustainable energy source for crypto mining. The dedicated geothermal plant would generate 95 megawatts. The country plans to fund a megaproject with a whopping cost of $480 million at a later stage. As per Bukele, the new plant would be funded 100% from Bitcoin proceeds.
At present, the cost of mining and the question of green energy projects are two of the largest issues faced by Bitcoin miners. Bukele also pointed out at one point that if Bitcoin prices were not moving up anymore, investors would take an interest in the flagship cryptocurrency. He further added that as Bitcoin puzzles are becoming more complex, the miners need bigger areas and higher computational power to keep up with their progress.