El Salvador Hosted 44 Countries: Was It a Bitcoin Event?
El Salvador, the country that has accepted Bitcoin as a legal tender in September 2021 and encourages other countries to innovate in cryptocurrencies in this context, is claimed to have a 35% loss in 2,301 Bitcoins purchased with the public funds.1
The International Monetary Fund (the “IMF”) has criticized Nayib Bukele, the President of El Salvador, for the country’s Bitcoin experiment. The IMF forced El Salvador to stop accepting Bitcoin as a legal tender in January and even published a report on this issue.2 Despite various pressures and criticisms, Bukele announced on his Twitter account on May 9 that he bought the dip and added 500 Bitcoin to its balance sheet.3
Following these developments, Bukele announced on Twitter that 44 countries would gather in El Salvador to discuss financial inclusion, digital economy, banking the unbanked, the Bitcoin rollout, and its benefits in El Salvador. It raises several questions in the industry.
The Event
While crypto projects fluctuate all around the world and the President is facing pressure, Bukele revealed the list of attendees on Twitter4 includes fiscal and financial authorities from 44 countries who gathered in said event hosted by The Banco Central de Reserva de El Salvador (the “Central Bank”). After a two-year delay due to the pandemic, the event was held and touched on financial access. All countries participating in the event organized by the Central Bank, are among the member states of the Alliance for Financial Inclusion (the “AFI”).5
The primary purpose was to convene on economic issues; however, pursuant to Bukele’s tweet,6 it was also discussed whether the meeting was a Bitcoin event. Galoy, the company that developed the Bitcoin Beach wallet, has published an article stating that the bankers are not gathering to discuss Bitcoin and tried to clarify the misinterpretations of Bukele's statements.7 On the other hand, several pictures from the event prove that many of the attendees participated in learning activities about and enjoyed the Bitcoin ecosystem.8
AFI addressed these concerns on its site, stating that the meetings were aligned with the national financial inclusion strategy launched by El Salvador that prioritizes digitization and access to financing for small businesses.9
On the event’s final day, 90 central bankers and financial officials from all participating countries went to Bitcoin Beach to download their Bitcoin wallets and first-hand experience a new economic system.10 A fruit vendor mentioned that the central bankers were excited to see about the use of BTC among vendors.11
(Accessed on: 01.06.2022).
What’s Next?
El Salvador continues to stand behind its decision on Bitcoin and resists all pressures. It aims to lead the countries by organizing financial meetings and inviting other officials to share their ideas. Although the meetings’ details are not publicly available, it is considered that they will probably be held again.
As Vircon Legal, we'll keep you updated regarding the crypto-related news in El Salvador and other developments about virtual assets.
https://www.cnbc.com/2022/05/09/el-salvador-buys-500-bitcoin-as-crypto-market-sell-off-continues.html (Accessed on: 01.06.2022).
https://bitcoinmagazine.com/culture/el-salvador-brought-44-countries-to-bitcoin (Accessed on: 01.06.2022).
https://bitcoinmagazine.com/culture/el-salvador-brought-44-countries-to-bitcoin (Accessed on: 01.06.2022).
https://galoy.io/the-bankers-were-definitely-not-coming-to-el-salvador-to-learn-about-bitcoin/ (Accessed on: 01.06.2022).
https://bitcoinmagazine.com/culture/el-salvador-brought-44-countries-to-bitcoin (Accessed on: 01.06.2022).
https://www.afi-global.org/events/digital-financial-services-sme-finance-working-group-meeting/(Accessed on: 01.06.2022).
https://www.nasdaq.com/articles/how-el-salvador-introduced-44-countries-to-bitcoin-this-week (Accessed on: 01.06.2022).
(Accessed on: 01.06.2022).