There are currently no gold mines operating in El Salvador, something that President Nayib Bukele wants to change. For this reason, in the coming days, it will send to the Legislative Assembly a request to repeal the Mining Prohibition Law in El Salvador, with the aim of beginning to carry out “responsible exploitation” of this activity in the country.
“If we make responsible exploitation of our natural resources, we can change the economy of El Salvador overnightand that’s apart from everything we’ve been doing here all this time. “We are going to invest money in recovering our bodies of water,” the president said recently.
According to estimates, El Salvador has aBitcoin-tesoro-oro-nayibbukele/#google_vignette” target=”_blank” rel=”noreferrer noopener”> “gigantic gold treasure”which could amount to 3 trillion dollars and which, if realized, would raise the nation’s economic prospects by approximately 8,800%, as reported by CriptoNoticias. However, Bukele has an obstacle, which is the fact that Gold mining is widely rejected by the inhabitants of El Salvadorso much so that it was even banned in March 2017.
President Nayib Bukele confirms that the repeal of the Anti-Mining Law will be requested. Likewise, he announced a plan to clean 95% of rivers, which, according to studies, have been contaminated for years. pic.twitter.com/eY2wYNbh7S
— Radio YSKL 📻 💻 📲 (@radioyskl) December 5, 2024
In any case, mining the gold found in Salvadoran territory and extracting the enormous treasure of gold that was discovered in Chinathe supply of the gold metal would increase and therefore its price would decrease, as already highlighted by the influencer and bitcoin activist Pierre Rochard. «
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“El Salvador discovered trillions of dollars in gold deposits that, when extracted, will massively dilute the above-ground gold supply,” said Rochard, who is also vice president of research at Riot Platform, one of the largest bitcoin mining companies. big in the world. Bukele reacted to his comment by stating that this is indeed what he will do: “we will dilute that thing as if there were no tomorrow,” said the Salvadoran president, demonstrating that the possible reduction in the price of the precious metal is not something that really worries him.
However, Bukele would have a solution in his hands, such as recommended the famous cypherpunk Adam Back: «Extract the gold, buy bitcoin. Another Bitcoin mining method.
In fact, Back believes that it is necessary for El Salvador to convert its gold into bitcoin, “as soon as possible before bitcoin rates in gold ounces (BTC:XAU) rise too much.” How it happened historically, As Bitcoin Price Gains Momentum, Gold Loses Its Bullish Advantage and at that rate there are already those who glimpse that the market-leading digital currency will replace gold as the main reserve asset of value in the next ten years.
The decision that Bukele will make from now on is unknown, but if he follows Adam Back’s advice to resume gold mining and use those resources to buy bitcoin, it will probably have implications that transcend national borders. The increased supply of gold could affect global financial markets and accelerate the adoption of bitcoin as reserve assets, expanding the trend already underway.
I would apply a strategy similar to that of MicroStrategythe company that owns the most BTC in the world and that, to finance its purchases, has resorted to various sources, such as the issuance of bonds and the use of its own lines of credit.
Meanwhile, the eyes of the world will continue to rest on the strategies that Bukele uses to boost the economy of El Salvadorwhile continuing to implement a strategy with bitcoin that is already beginning to pay off strong signs that it is working.
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