For a long time now, El Salvador have made the news in the crypto world for their commitment to incorporating Bitcoin into the legal tender of the country, and to that effect were buying up the tokens until a financial setback caused them to stop.
However, renewed focus on the project has led the government to resume their purchases on the crypto market, with one small caveat – they’re doing it one step at a time.
Financial Challenges Blocking Progress
It is safe to say that Bitcoin has gone through a fair number of challenges in the last few years getting to the point where it is part of the El Salvador economy. In 2021, the country produced and implemented the Bitcoin Act, which saw them purchase nearly $375 million of crypto assets. However, financial setbacks have led to the program being suspended until recently.
The country is back purchasing crypto once more however, but they’re only buying one coin at a time as part of a new, more cautious economic strategy. Whether or not this will yield success remains to be seen.
Turbulent Waters For Crypto and Country
It is safe to say that both El Salvador and Bitcoin itself have experienced difficulties getting to this point in the process.
For El Salvador, the project has lowered their credit lines from providers, and there has been talk of defaulting on loans and repayments in the future.
For Bitcoin, the challenge has come from a sharp drop-off in value. Recent energy costs have left the currency less popular as the process of mining coins becomes more expensive to facilitate.
Hope on the Horizon
Despite the challenges faced by the currency and El Salvador, this is a positive development for both, and a welcome return to form.
The potential applications for crypto as a currency are well-known, and El Salvador is a pioneer in this regard, together with Switzerland. The implementation of Bitcoin, even on just a provisional basis is highly encouraging and points to a shift in the way people are viewing the currency generally.
Of course, it will be difficult to tell exactly how long it will take for the new system to be implemented if El Salvador is only buying one at a time. However, this should not be seen as a bad thing by any means. If the country can slowly build up a store of cryptocurrency, then they can eventually use that to get the best results. It’s a slow process, but ultimately a successful one.
We at Bitcoin Bible are so happy to see that El Salvador has started to purchase cryptocurrency again. It is important that Bitcoin returns to form too, so these changes are absolutely astounding. Hopefully, the momentum that we can get from this process will see the currency continue to do well, and it will make a shift in the fortunes of the community. We’ve been chasing a win for a while now, so this is nice to see.