The adoption of Bitcoin in El Salvador gives the first positive results for the country. Recall that in early September, cryptocurrency became a legal means of payment in El Salvador. In parallel with this, the government made official purchases of BTC . Now that the coins have risen in value, the President of Salvador Nayib Bukele announced the realization of part of the profit - with the money received, 20 schools will be built in several cities of the country. Let's talk about what is happening in more detail.
Note that Bukele does seem like a big fan of cryptocurrency. In particular, this is evident in his Twitter, in which he regularly mentions digital assets. For example, here's a tweet from the second half of September where the president talked about buying an additional 150 bitcoins.
Moreover, this was done during the drawdown of the exchange rate, so at least here Nayib and his team acted professionally. As a result, in October, BTC grew by 40 percent, thanks to which the country earned millions of dollars. And they already have something to spend.
How Bitcoin is used
The latest round of bitcoin purchases by the government brought another 420 BTC to the state budget. Thus, El Salvador accumulated a total of 1,120 coins worth approximately $ 69 million. Several million of this amount will be spent on building schools, Bukele said.
Here is the President's remark in which he spoke about the plans of the state. The quote is from BusinessInsider .
I want to make an announcement: several million dollars of our profits from the rise in the price of Bitcoin will be invested in the construction of the first 20 schools in the country - fully equipped and modern.
This means that, in fact, the profit will be spent usefully. Moreover, in this way, Bukele will certainly provide himself with additional political points, because it was he who initiated the investment of public funds in Bitcoin. At the same time, the opinions of citizens on this issue were not particularly asked - although they will now also benefit from this.
Bukele also did not miss the chance to assert his innocence in the legalization of Bitcoin.
Most interestingly, the opposition was against the Bitcoin law and cryptocurrency purchases.
It is important to note here that the country was lucky with the time of investment and the adoption of Bitcoin as a means of payment, because the cryptocurrency has really grown since September. At the same time, back in May and early summer, it experienced a series of significant falls, which ended in losses for some investors. Obviously, in this case, the opposition would clearly be right
President of Salvador Nayib Bukele
As we noted, the Salvadoran government's cryptocurrency policy has had many critics both domestically and internationally. Representatives of the International Monetary Fund have also opposed the Bitcoin adoption strategy. But as we can see, so far the initiative of Nayib Bukele brings only positive consequences.
More news this week is the sentencing of Joseph James O'Connor, a suspect for money laundering, account fraud and Twitter hacking. O'Connor, also known as PlugwalkJoe, stole over $ 784,000 in Bitcoin, Ethereum and Litecoin between March and May 2019. To do this, he swapped the SIM cards of his victims from a New York crypto company to access their personal accounts.
Let us remind you that replacing the SIM card invalidates the card of the real owner of the number and allows the fraudster to gain access to the number without his knowledge. Thus, hackers gain access to accounts on cryptocurrency exchanges, because many tie up two-factor authentication under the phone, where temporary passwords are received to enter the account.
Joseph James O'Connor
In addition, PlugwalkJoe is involved in the famous hacking of dozens of celebrity Twitter accounts that took place last summer. Then the accounts of US politicians, large American companies and stars "advertised" fake distribution of cryptocurrencies. The scheme was organized by several crooks , some of whom were arrested independently of O'Connor. In total, this scam they managed to steal 118 thousand dollars in Bitcoin.
We believe that the idea of introducing Bitcoin as a means of payment in El Salvador was successful - as well as the purchase of coins from the state budget. And although the method of popularizing cryptocurrencies turned out to be not the most friendly, in the end, the state and residents will certainly benefit from this, especially if BTC and other coins continue to grow. Most likely, the governments of other countries will continue to do this, as a result of which, after a few years, Bitcoin will in fact be considered an international currency - at least in a small list of countries.
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