The governor of El Salvador organized a meeting on Monday that could be regarded as the Davos for Bitcoin. He invited officials from banks and financial regulators from at least 40 nations to discuss and declare Bitcoin as legal and an official currency. El Salvador was also the first country to recognize bitcoin as a legal tender eight months ago.
President Nayib Bukele tweeted, “Tomorrow in El Salvador meeting, 32 central banks and 12 financial authorities (44 nations) shall meet and discuss financial inclusion, digital economy, banking the unbanked, the Bitcoin deployment and its advantages in our country”.
El Salvador has steadily increased its Bitcoin holdings since introducing it as legal tender, and the venture has been considered a success. Several Salvadorans depends on remittances from relatives living in other countries to support their livelihood. El Salvador, on the other hand, has always been at the frontier of Bitcoin adoption because it became the first jurisdiction to declare the bitcoin legal currency in 2021. Furthermore, the president of the nation has been trying to increase the country’s Bitcoin holdings.
Besides the losses incurred as a result of the recent crypto crisis, several individuals have expressed their fear to invest in Bitcoin and stated that they would not like to accept remittances from relatives overseas in the crypto due to the increased processing fees.
Since all retailers in El Salvador are officially compelled to take Bitcoin, acceptance may be diminishing due to certain barriers. According to a report by the National Bureau of Economic Research in the United States, barely 20% of individuals in El Salvador use the legislature crypto wallet software Chivo. The government provided individuals with $30 in Bitcoin who installed the software in exchange for their downloading.
El Salvador’s pro-Bitcoin legislation boosted the tourism sector substantially, as global investors attracted to the country in great numbers. Governments also want to collect further information and create innovative techniques for adopting Bitcoin into their economies and growth plans.
El Salvador took advantage of the recent BTC market downturn and acquired 500 BTC, bringing its total BTC holdings to 2,301, or nearly $71 million at current market pricing.