According to El Salvador’s President Nayib Bukele, the Bitcoin project is key to the country’s financial milestone of not resorting to external debt by 2025. The statements were made during the Central American country’s independence day event that was broadcast on X this Sunday.
Government officials highlighted the advantages of incorporating Bitcoin into national reserves and stressed that the results are now evident. In that sense, for next year’s national budget, the nation will not need to borrow externally to finance the expenses of the annual economic period.
This is a very important step, as it would make it one of the few countries to reach this economic milestone. The most committed followers of BTC openly sympathize with Bukele’s initiative and believe that it will lead the country on the path to financial freedom. The CEO of Ark Invest, Cathie Wood, recently assured that the GDP of the Spanish-speaking country would multiply x10 in the next 5 years.
As you can see, the enthusiasm in the industry for El Salvador’s initiative remains. The country represents proof that it is possible to incorporate the largest Cryptocurrency into the growth plan with great results in a short time.
The Bitcoin project is key for El Salvador
According to Bukele, El Salvador will free itself from external debt. His Bitcoin-based economic project is a key piece in this equation. The country’s investment plan is currently based on the purchase of 1 BTC per day. According to data from the Arkham Intelligence portal, the country owns 5,875 bitcoins, which is equivalent to just under $340 million at the current price of the cryptocurrency.
In 2021, El Salvador became the first country in the world to make BTC legal tender alongside the US dollar. Since then, the nation has faced harsh criticism, especially during the severe winter of 2022, which pushed prices to a low of $16,000 per BTC.
El Salvador Bitcoin Reserves. Source: Arkham
Despite this, the strategy remains in place and the government hopes that Bitcoin will allow it to attract investment capital. Apart from buying coins, the authorities also mine BTC using geothermal energy. On the other hand, more ambitious projects such as Bitcoin City stand out. Although it has made little progress so far, it is one of the great hopes of the authorities.
In any case, the 2025 budget will be announced on September 30 and becomes a confirmation that the Bitcoin project is key in this new stage of El Salvador’s effort to do without external debt.
On September 30, we will present to the legislative assembly, for the first time in decades, the first fully financed budget, without the need to issue a single cent of debt for current expenses.
Nayib Bukele.
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