Nayib Bukele commenced his second term as President of El Salvador, marking a continuation of his administration’s groundbreaking endeavors in cryptocurrency adoption. Since September 2021, Bitcoin has served as the official legal tender in the South American nation.
During his initial term, Bukele reaffirmed his commitment to acquiring one Bitcoin daily into a cold wallet until the cryptocurrency reaches technical unattainability.
Max Keiser, a staunch advocate of Bitcoin and advisor to the President, has outlined an ambitious vision for El Salvador under Bukele’s second tenure. Keiser envisions a future where the nation’s wealth is increasingly decentralized, facilitated by citizen-controlled Bitcoin nodes.
In this envisioned scenario, the President intends to propose initiatives funded through crowd-sourcing, effectively reshaping the social contract and transitioning towards a circular economy centered around Bitcoin.
Moreover, Keiser anticipates El Salvador becoming debt-free and leveraging its geothermal and volcanic resources to power Bitcoin mining operations, aiming to capture 10% of the global hash rate.
The country has already made notable strides in this direction, utilizing geothermal energy from the Tecapa volcano to mine 473.5 BTC, equivalent to approximately $29 million. Of the 102 MW generated by the nation’s power plants, 1.5 MW is dedicated to Bitcoin mining.
Arkham’s data reveals that El Salvador presently holds 5,718 BTC, valued at approximately $400.26 million. Keiser posits that this innovative approach will diminish the influence of central banks and render international financial institutions like the IMF irrelevant in the nation’s economic policies.
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