El Salvador’s president, Nayib Bukele , met with Bitcoin investor Michael Saylor at the presidential residence on Thursday, February 13th. Although their conversation was private, Saylor hinted at what they discussed by posting on X, mentioning that their meeting centered around speeding up the global adoption of Bitcoin. Bukele, a strong supporter of Bitcoin, has sought ways to connect his country with the global digital economy. At the time of this meeting, El Salvador added one Bitcoin to its cryptocurrency holdings. El Salvador now has over 6,000 BTC, totaling around $600 million. This forms part of El Salvador’s dollar cost-averaging strategy and adoption of cryptocurrency. Saylor has also amassed an extensive Bitcoin portfolio. His company Strategy recently added over 7,000 BTC to its portfolio, bringing its Bitcoin holdings to over 470,000 BTC, totaling around $46 billion. Despite Bukele’s concentrated efforts to adopt Bitcoin technologies, only around 8% of people in El Salvador use the Chivo digital wallet. Many surveys report mixed reactions to Bitcoin adoption, with many people still skeptical about the long-term benefits. However, these attitudes may change if the crypto sector continues to succeed. The country’s National Bitcoin Office (ONBTC) revealed the meeting on its official X account. Saylor and Bukele both shared images of the event, including a picture of them shaking hands in the presidential house and sitting together at a large dining table, enjoying dinner with many well-dressed guests. El Salvador started its Bitcoin journey in 2021 when the cryptocurrency was announced as a legal tender. However, the International Monetary Fund (IMF) has set many conditions that restrict Bitcoin adoption as a requirement for a $1.4 billion loan agreement. Some of these restrictions include limiting the government’s ability to manage Bitcoin holdings and ruling out crypto as a method for paying taxes. Bukele, on the other hand, insists on adopting Bitcoin as a method to create more economic opportunities and realize his vision of a crypto-powered economy. Despite pressure from outside sources, such as the IMF, El Salvador is at the forefront of national Bitcoin adoption. The world, in fact, is looking carefully at El Salvador to see if Bitcoin can be safely adopted without any serious downsides. Both governments and businesses have been interested in Bitcoin to boost the economy and create more cash flow. Whether they are developing their chains or amassing an extensive crypto portfolio, they are progressing towards a stage when Bitcoin is globally recognized. President Donald Trump, for example, has created a pro-crypto administration. He has promised to limit crypto regulation and promote American-made crypto projects. His association with Elon Musk, a known promoter of crypto projects like Dogecoin, only emphasizes that government involvement in Bitcoin adoption is an ongoing trend. Then, there is the pardoning of Silk Road creator Ross Ulbricht early in Trump’s presidency, which is a clear sign of a pro-Bitcoin administration. In Argentina, President Javier Milei endorsed Bitcoin officially only ten days after entering office. Ever since December 2023, Bitcoin could be recognized legally in binding contracts. Therefore, Argentina joins El Salvador and North America in recognizing Bitcoin as a legal tender globally. Milei further introduced measures to decentralize tax collection, allowing provinces to set their tax policies. This may enable cryptocurrency to compete with traditional fiat forms of tender, further empowering Bitcoin adoption on the American continent. Further, Melei put an end to imposing income tax on Bitcoin trade, allowing Bitcoin to be used like the dollar. The meeting between El Salvador’s Nayib Bukele and Bitcoin investor Michael Saylor marks a trend of crypto adoption on the American continent.
