El Salvador Promotes Bitcoin in Diplomatic Talk with Chinese Ambassador

• A recent meeting between El Salvador and China has disclosed plans to promote digital connectivity and economic growth through various initiatives. 
• El Salvador has currently accumulated more than 6000 Bitcoins, becoming the sixth country to reach this milestone.

The Vice president of El Salvador, Félix Ulloa, has recently highlighted the success of its Bitcoin implementation and the role of the asset class in economic growth in a recent meeting with Chinese Ambassador Zhang Yanhui. According to an excerpt of the discussion reviewed by CNF, the meeting focused on the bilateral ties between the two countries as well as the initiatives to enhance digital connectivity and economic growth.

Further analyzing the outcome of the meeting, we took notice of Ulloa’s emphasis on the financial and digital advancement of El Salvador. Specifically, the significant milestone of the country’s Bitcoin (BTC) reserve surpassing $500 million was highlighted. Not taking anything away from President Nayib Bukele, the vice president commended the effort of the Bitcoin office led by Stacy Herbert for this groundbreaking achievement.

The El Salvador Vuela, a crucial initiative meant to modernize the national aeronautical infrastructure and Cable Submarino, was also mentioned. According to our research, this was designed to boost digital connectivity while ensuring that submarine cable networks are optimized.

Further emphasizing the role of this project on the general growth of the country’s economic breakthrough, Ulloa stated that this would make El Salvador the center of technology and connectivity. Meanwhile, efforts are underway to significantly improve air and digital connectivity through support from various entities, including the Development Bank of Latin America and the Caribbean (CAF). Adding to this, Ulloa mentioned the recent support of China in its economic and technological standings.

Source: Vicepresidencia ESA on X

El Salvador’s Bitcoin Moves and IMF Agreement

In 2021, CNF reported the groundbreaking decision of El Salvador to approve Bitcoin as a legal tender. Today, the country has accumulated a total of 6,000.77 Bitcoins, sending its crypto treasury asset to $569.3 million. According to reports, its new acquisition has witnessed a 108.02% growth. Per recent data published by crypto analyst Whale Catcher, the country has become the sixth country to hold more than 6000 Bitcoins currently.

In a recent post by the senior advisor to President Bukele Max Keiser, it was disclosed that the country plans to acquire 20,000 BTC. Meanwhile, the International Monetary Fund (IMF) is reported to have reached a staff-level agreement with El Salvador on an Extended Fund Facility of $1.4 billion.

This agreement requires the mitigation of Bitcoin-related risks. In this case, a legal reform will ensure that the private sector’s acceptance of the asset is voluntary. Also, the public engagement in “Bitcoin-related economic activities and transactions in and purchase of the asset would be confined.”

According to the deputy director of the IMF’s Western Hemisphere Department, Luis Cubeddu, the agreement would be a “40-month extended arrangement to address the balance of payment needs and support the economic reforms of the government.” Amid the backdrop of this, the country continues its Bitcoin agenda as it pledges to pay $30 in BTC as a bonus to users who download the Chivo wallet.

At press time, Bitcoin was trading at $93.4k after declining by 1.4% in the last 24 hours.