It should be noted that Salvadoran authorities are indeed actively buying Bitcoin. For instance, the country’s president Nayib Buquele announced the latest deal of 500 BTC at $30,744 in the first half of May, as the cryptocurrency continued its collapse.

Meanwhile, as of the beginning of the year, the country’s BTC investments were at a loss by approximately $15 million, meaning the investment was not the most profitable at the moment. We wrote more about that in a separate article.

El Salvador continues to buy bitcoins

Here’s one of Gonzalez’s quotes about El Salvador’s plans to accumulate BTCs in its budget.

The country’s president, Nayib Bukele, bought BTC and made a profit at a certain strategic juncture. In the crypto market, there are times when you can turn a profit and when you need to invest even more. Right now the price of cryptocurrencies is falling – it happens, that’s normal. But you don’t have to be sad about losing your investment, because now is a good time to buy more bitcoins as their price has fallen lower. Here’s the strategy.

El Salvador MP Dania Gonzalez

El Salvador’s crypto reserves are already working successfully to benefit municipal infrastructure across the country, Gonzalez said. She continues.

With reserves in Bitcoin, we need to build twenty more schools. Before Bitcoin, we had to approve projects, include them in the country’s general budget and use people’s money to build them. Now, however, these works are being done thanks to the profits generated by the cryptocurrency.

Another question from the interview was about centralised banking digital currencies, i.e. the so-called CBDCs. Gonzalez sees no direct opposition between “traditional” cryptocurrencies and CBDCs. She is confident that the two concepts may well coexist in the future. Furthermore, the MP said that the proposed CBDC issuance by countries shows that their leaders have understood the power of the crypto-economy.

Gonzalez also stressed that El Salvador is working to expand the cryptocurrency law and will build an ecosystem based on digital assets, eliminating taxes for sectors of the economy linked to Bitcoin. Other laws will be reformulated to meet the new demands of the digital economy and reduce bureaucracy in public administration procedures.

We want to be able to start a business in five minutes here in El Salvador. We already have a national digital cryptocurrency wallet system, and we intend to pass a law so that investors from all over the world can immediately obtain Salvadoran citizenship if they invest in Bitcoin in our country.

President of El Salvador Nayib Buquele

We should note that this is a very curious strategy. If properly implemented, El Salvador could become a very attractive place for wealthy crypto-investors, who will get various tax breaks due to their activities. In return, the country will receive an influx of investment that can be spent on new projects on a national scale.

How is Bitcoin changing people’s lives?

The aforementioned strategy is really paying off: Gonzalez confirms the growing interest of a large number of investors in doing business in El Salvador. Here’s her cue.

This has opened the door for independent businesses to get a new payment gateway, because payment channels can be cash, or they can be credit or debit cards. But if you go to a bank and want to apply for a merchant to accept credit card payments, you pay a membership fee and a commission, which can be as high as 9 per cent for each purchase.

Bitcoin, on the other hand, “is a fully decentralised financial system where there are no fees if you use a national cryptocurrency wallet. Another direct benefit mentioned by the MP relates to transfers made by Salvadorans in other countries. The US, for example.

According to Gonzalez, 7 million Salvadorans live inside El Salvador and about 3 million live outside of it.

Thanks to Bitcoin, remittances from the US can be made with no fees other than the fees for the miners to service the transaction itself. Gonzalez also claims that El Salvador’s Bitcoin law caused Western Union to lose about $400 million last year on local money transfers.


We believe that such faith in Bitcoin is indeed worth it. In this case, the authorities in El Salvador have already realised the potential of cryptocurrencies, which primarily help citizens save money on transfers. However, this is only a small part of the strengths of the coins at their disposal. So we just have to wait for the rest of the officials and bankers to consider all these pluses.

What do you think about it? Share your opinion in our Millionaire Crypto Chat. There we discuss other important developments in the world of decentralisation.