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Did El Salvador benefit from making Bitcoin a legal tender?
- El Salvador adopted Bitcoin as a legal tender in September 2021, and we can finally see whether accepting Bitcoin as a legal tender has brought advantages or not.
- Although some individuals think that the Bitcoin law was one of the poorest decisions that Bukele has taken under his government, El Salvador experienced massive growth in tourism and infrastructure upgrades since its adoption. It created new roads and airports, and established a new ferry route to Costa Rica.
- Additionally, El Salvador introduced favorable tax incentives for tech businesses, opted for a digital assets law, and made a landmark agreement with Google, which is why the giant company chose to base some of its cloud services in El Salvador.
- Moreover, enhancements have also been made in the mining sector, where a significant company, Volcano Energy, has decided to support the energy that Bitcoin mining requires. Volcano Energy has invested $1 billion to improve the mining operation in El Salvador and make this process more sustainable by using wind and solar power.
- In the past, El Salvador was ranked as one of the countries with the highest number of murders, but now it is the safest country in Latin America, and with the help of Bitcoin adoption initiative, human rights of Salvadorans and their daily lives have greatly improved.
- After Bitcoin became legal tender, El Salvador implemented project My First Bitcoin that trained teachers with best practices and educated Salvadoran students to use Bitcoin to benefit from a better future. The Ministry of Education has considered implementing Bitcoin into the national education system.
- El Salvador's bonds have been one of the most promising investments despite being downgraded to junk status and not having demand immediately after the adoption of Bitcoin as legal tender.
- Although time still needs to pass to see the full impact that Bitcoin has had on El Salvador, the country's profound transformations are most likely a result of Bitcoin initiatives inspiring other nations worldwide.
- Overall, the Bitcoin initiative helped El Salvador blossom and opened its doors to global opportunities, which offer a chance to attract enormous foreign capital into the country.
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