Recently Dania Gonzalez, deputy of the Republic of El Salvador, went to Brazil in order to tell the experiences of her country regarding the decision to adopt Bitcoin (BTC) as legal tender currency. The invitation was initiated by influencer Rodrix Digital, who recently visited El Salvador to produce a documentary on cryptocurrencies.
Among the activities of the legislator in Brazil we mention the participation in Bitconf 2022 and the meeting with Daniele Abdo Philippi, CEO of Dape Capital, and Ana Élle, CEO of Agency ROE.
In between engagements, Gonzalez argued with Cointelegraph, revealing how Bitcoin has helped change the lives of El Salvador’s people and how the federal government, led by the President Nayib Bukelehave exploited the resources invested in BTC to improve the local economy.
El Salvador just bought the dip!
500 coins at an average USD price of ~ $ 30,744 per #Bitcoin
El Salvador just bought the dip!
500 coins at an average USD price of ~$30,744 #Bitcoin
– Nayib Bukele (@nayibbukele) May 9, 2022
Regarding El Salvador’s investment in Bitcoin and the impact on people’s lives – given the recent market correction – Gonzalez stressed that every investment has a cost and a benefit.
“What Nayib Bukele did was buy Bitcoin and make a profit at a given strategic moment.”he has declared. “In the cryptocurrency industry, there are times when you can make a profit and others when you need to invest more. Now cryptocurrencies are down, this happens, it’s normal, but at this point instead of being sad, instead of to think that you have lost all your investment, it is time to buy more Bitcoins because now the price is affordable, this is the strategy “.
According to Gonzalez, El Salvador is already benefiting from Bitcoin investments, citing two initiatives – a veterinary hospital and a public school – made possible thanks to cryptocurrency. He explained:
“Bukele built a veterinary hospital for the benefit of the population where services, any service for your pet, cost $ 0.25. One operation also costs that amount and is available to the entire population. Bitcoin has been converted into a benefit to the population. Now, with the reserve we have in Bitcoin, we have to build 20 more schools. Before Bitcoin, to do that we had to approve the projects, put them in the general budget of the nation and use the citizens’ money for construction. Now these works are made thanks to all the profits obtained with Bitcoin “.
Gonzalez indicated that Bukele’s strategy has already proven to be successful in terms of socioeconomic impact.
“This is the main reason why the president also buys Bitcoin”he has declared. “It does so in order to generate profits for social projects for the population […] It is not just about words, but something tangible for the population, because they can see part of the public services realized thanks to the profits in Bitcoin “.
Cointelegraph also discussed with the legislator about the digital currencies issued by central banksalso known as CBDCs, and how their issuance by nations can impact the cryptocurrency market.
Gonzalez said he does not see a contrast between the two tools, believing that both must coexist in the digital ecosystem that will guide nations into the future. Furthermore, he said that countries’ proposed CBDC issuance shows that they understand the power of the crypto economy.
The deputy also stressed that El Salvador is committed to expanding the effects of the Bitcoin Law and that it will develop the ecosystem based on cryptocurrencies, with the elimination of taxes for sectors related to the crypto economy.
Furthermore, he highlighted that subsequent laws will be reformulated to meet the new needs of the digital economy and to reduce bureaucracy in public administration procedures. He illustrated:
“We want to make it possible to open a business in 5 minutes here in El Salvador […] We already have a national digital crypto wallet system and we intend to enact a law so that investors around the world can obtain immediate citizenship if they invest in our country’s crypto sector. “
At El Salvador’s financial inclusion conference, central bankers scream Bitcoin, literally.
The third day saw 44 delegates from central and financial banks in attendance go to the country’s iconic El Zonte or “Bitcoin Beach”.
(Report via @JoeNakamoto)
El Salvador’s financial inclusion conference has central bankers yelling Bitcoin, literally.
Day 3 saw the 44 central bank and financial delegates attending make a trip to the country’s iconic El Zonte or “Bitcoin Beach.”
— Cointelegraph (@Cointelegraph) May 20, 2022
Bitcoin changes people’s lives
Gonzalez also revealed to Cointelegraph that the adoption of Bitcoin as a fiat currency has attracted investors and companies from all over the world. strengthening the independence of merchants and local communities from banking monopolies.
“It has opened an opportunity for independent merchants to have a new payment gateway beyond cash or credit / debit cards.”He admitted. “If you go to a bank and want to request that the [punto vendita] you accept credit or debit payments, you pay a registration fee and a commission that can reach 9% for each purchase “.
Bitcoin, on the other hand, “it is a completely decentralized financing, there is no commission if you use the national wallet”he illustrated.
Another direct benefit mentioned by the deputy is related to financial remittances made by Salvadorans living in other countries, like the United States. According to Gonzalez, there are 7 million Salvadorans living inside El Salvador and about 3 million outside its borders, mostly in the US.
Thanks to Bitcoin, remittances from the US can be made commission-free, he said. Gonzalez also reported that Western Union lost about $ 400 million in the remittance business last year due to El Salvador’s Bitcoin Law.
Bitcoin Beach e Surf City
Gonzalez revealed details of the Bitcoin Beach and Surf City projects, both planned in the Zonte region, where Bitcoin is being used as a form of social transformation that promotes crypto payments and economic development through digital assets.
And all the central bankers shouted ….
And all the Central Bankers screamed…. pic.twitter.com/MxdOrYD3lc
— Bitcoin Beach (@Bitcoinbeach) May 20, 2022
The deputy recalled that Bitcoin Beach has existed since before the approval of the Bitcoin Law: “In Bitcoin Beach you can buy a drink or a” Pupusa “- a typical local food – on the street or go to a luxury restaurant and pay with Bitcoin”.
The deputy also revealed that a project called Surf City is underway in El Zonte, which aims to train the local community to take advantage of surf-related tourism, as the coast has waves suitable for the practice of this sport.
“These communities have benefited from job opportunities in companies, hotels and restaurants that now have greater potential: now many more tourists come to El Salvador because […] they can pay whatever they want with Bitcoin “he reported. “I know of companies that came from Singapore a few months ago and hired about 50 Salvadorans. This shows how Bitcoin has changed people’s lives in El Salvador.”
Furthermore, the congresswoman pointed out how Bitcoin has favorite the unbanked who now, thanks to cryptocurrencies, can access financial services without the bureaucracy of traditional systems:
“Traditional banks have excluded 70% of the country’s population from their services for various reasons. In addition, of the 30% of the population that has access to financial services, only 23% have turned to banks, while 7% have done through cooperatives with very high rates. Now Bitcoin and cryptocurrencies favor this previously excluded population, which now finally enjoys possibilities and opportunities “.
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