El Salvador, the first country to implement bitcoin as a legal tender, will use its Bitcoin trust profits to build 20 new schools.
In a television address this week, Nayib Bukele, El Salvador’s president, announced that the country would use a surplus from the Bitcoin Trust in building modern and fully equipped schools.
The fund, known as FIDEBITCOIN or the Salvadoran Trust for the Adoption of Bitcoin, was established to help in Bitcoin adoption across the country.
The $150 million Bitcoin Trust was approved by lawmakers in August, days before Bitcoin became a legal tender alongside the US dollar. With recent increases in Bitcoin’s value, Bukele noted that the fund currently has ‘a few’ million dollars surplus.
The declaration was confirmed in a tweet by the president’s press secretary on Tuesday.
No taxes involved
The president emphasized that the new education facilities will not use a cent from El Salvador’s citizen taxes or national budget. They’ll only use money from the Bitcoin fund, and the internet and social media have been quick to dub them ‘Bitcoin Schools.’
The school construction supports El Salvador’s My New School initiative, which aims to construct 400 schools to support the country’s education infrastructure. The funds generated from the profits will complement a $200 million education expansion incentive from the Central American Bank for Economic Integration.
Bitcoin law on track despite criticism
President Bukele clarified that the benefits were made possible by the Bitcoin law created despite criticisms and opposition. Expressing optimism, he pointed out he was glad they ignored the critics and opposition, and the country will be seeing more projects from Bitcoin profits.
The International Monetary Fund (IMF) was among the first to criticize El Salvador’s decision in September. It expressed fear that the decision could bring macroeconomic, legal, and financial issues to the country.
However, Bukele’s wager on Bitcoin has been successful, especially with the growing price of the cryptocurrency. The president announced to open the schools at the inauguration of a pet hospital, another Bitcoin-funded project.
The pet hospital was named Chivo Pets, referencing Chivo wallet, the state-endorsed Bitcoin wallet for El Salvador. To incentivize the use and adoption of crypto, the government offers $30 in Bitcoins to those who open accounts on Chivo wallet.
Bukele’s push to make Bitcoin a legal tender aimed to improve the financial situation in El Salvador, where 70% of the adult population is unbanked.
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