El Salvador plans to use the proceeds from Bitcoin to build 20 schools to expand education in the area. The country’s president, Nayib Bukele, has confirmed that the tax revenue won’t be used to fund the project.
The president of Central American country El Salvador has launched an initiative to overhaul the country’s education sector, as Cryptopolitan reports. The government, still ambivalent about the decision to accept Bitcoin as legal tender, wants to use digital assets to boost the country’s economy and improve remittance services.
The schools’ programme intends to use Bitcoin income to modernize the educational system. It also guarantees that Salvadoran taxpayers’ money will not be utilised for the project. The initiative isn’t the first project El Salvador plans to finance from a Bitcoin Trust fund.
As the Trust has faced a number of fraud-related issues in the past, the process of implementing the initiative will be fraught with difficulties. President Bekuele hopes to use the school’s project to dispel citizens’ doubts about his intentions.
Nonetheless, investing in Bitcoin might help the country immensely, as the first cryptocurrency continues to grow significantly. It’s also a smart strategy to guard against inflation, which is becoming more of a concern in traditional economies as people’s living standards decline.
El Salvador’s move to adopt Bitcoin legal money came to the fore in September, when the president and the Senate bought 400 BTC. It’s the second currency in the country’s economy, operating on a par with the US dollar. The president of the country recently raised his reserve by 420 BTC, increasing the total amount of holdings to 1,100 BTC.
Allegations of fraud around the legal tender were connected to the Chivo wallet, raising public concerns about the government’s credibility. It’s reasonable that people are concerned about the country’s leading wallet service for transactions.
President Bukele says he realises the implications of Bitcoin mining for the country’s energy sector. The necessary preparations have already begun in order to power the process using volcanic energy. If successful, the project will kill two birds with one stone: the load on the energy sector will be reduced and the mining will be powered by clean energy.
Various financial institutions around the world have signalled that El Salvador is making the wrong moves by introducing Bitcoin into its financial sector. Nevertheless, the country has no intention of backing down on its plans. These projects will not only bring economic benefits, but will also help the government clear its name from fraudulent activities related to Chivo wallets.
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The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
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