El Salvador is reaping the rewards of its risk-taking with Bitcoin and will build 20 more schools in the country.
It was Tuesday, September 7, a key date in the history of Bitcoin and cryptocurrencies. El Salvador, a small Central American country where 70% of the population does not have a bank card or current account, had just adopted Bitcoin as legal tender. It was then a great first on the scale of the planet, never has a country been so far when it comes to cryptocurrencies.
Despite the rebellion of part of the population, Bitcoin has established itself in a few months as a reference currency, usable in everyday life. And it seems that the bet taken by President Nayib Bukele is winning.
El Salvador is reportedly going to build 20 new schools with profits from bitcoin.
— Pump 🌪 (@APompliano) November 2, 2021
Largely winning even. Indeed, thanks to the boom in the price of this cryptocurrency in recent weeks, El Salvador has made significant profits. According to the president of the small Central American state, the benefits would be such that they will allow the construction of 20 state-of-the-art schools in a country where the literacy rate is only 88%.
Money transfers made easy
El Salvador’s wealth is therefore directly linked to fluctuations in the cryptocurrency. With a trust of 150 million dollars, the country has been one of the biggest winners in the Bitcoin surge in recent weeks. After a long stagnation since the beginning of the year, even falling back to $ 30,000, Bitcoin offered a historic boom in the fall, even passing the $ 65,000 mark, a historic record for cryptocurrency.
El Salvador, a small country in Central America, derives 20% of its GDP from funds sent by expatriates. Cryptocurrencies are therefore a good way to break away from traditional currencies like the US dollar. The latter often impose a tax on leaving the country of residence of expatriates. The use of Bitcoin, which is not affected by any tax, should therefore make it easier for expatriates to send money to the country.
Projects are multiplying in El Salvador
While the construction of these 20 schools is part of a larger plan for education, which is to build no less than 400 schools in the country, the Bitcoin also allowed the construction of an animal hospital. The latter is expected to create more than 300 jobs in the country.
El Salvador, who firmly believes in Bitcoin assured that he will not sell a single fraction of his virtual currency to finance these projects. They will be built with the potential profits reported by the cryptocurrency. So be careful for them, that the virtual currency does not collapse in the coming months, which could harm the entire economy of the country.