El Salvador VP Highlights Bitcoin (BTC) Success, touts Role in Economic Growth

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

El Salvador’s vice president has met with the Chinese ambassador to discuss the country’s economic growth initiatives, including its Bitcoin adoption and efforts to enhance digital connectivity.

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.

During the meeting, Ulloa highlighted El Salvador’s financial and digital advancement, specifically mentioning the country’s Bitcoin (BTC) reserve surpassing $500 million. He also credited the effort of the Bitcoin office led by Stacy Herbert for this achievement.

Ulloa also mentioned El Salvador Vuela, an initiative to modernize the national aeronautical infrastructure, and Cable Submarino, a project to boost digital connectivity by optimizing submarine cable networks.

“This will make El Salvador the center of technology and connectivity. We have the support of the Development Bank of Latin America and the Caribbean (CAF) to significantly improve air and digital connectivity,” Ulloa said, adding that China has also recently supported El Salvador in its economic and technological standings.

El Salvador’s Bitcoin Moves and IMF Agreement

CNF reported in 2021 on El Salvador’s groundbreaking decision to approve Bitcoin as a legal tender. Today, the country has a total of 6,000.77 Bitcoins, bringing its crypto treasury asset to $569.3 million. Its new acquisition has witnessed a 108.02% growth. According to recent data published by crypto analyst Whale Catcher, the country is now the sixth to hold more than 6000 Bitcoins.

In a recent post, Max Keiser, a senior advisor to President Bukele, 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.

The agreement, according to the IMF, is subject to approval by the IMF Executive Board and the completion of prior actions by El Salvador. It also requires the implementation of policies to mitigate Bitcoin-related risks.

“The authorities have committed to a legal reform to ensure that the private sector’s acceptance of Bitcoin is voluntary. Also, the public engagement in “Bitcoin-related economic activities and transactions in and purchase of the asset would be confined,” the IMF stated.

According to Luis Cubeddu, the deputy director of the IMF’s Western Hemisphere Department, 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.