SCORECARD FOR
el salvador
Bitcoin Profile for El Salvador
Overview:
- Country: El Salvador
- Population: ~6.5 million
- GDP: Approximately $24.5 billion (USD - 2020)
- Currency: Bitcoin (BTC) and US Dollar (USD) since September 2021
Bitcoin Adoption:
- Legal Tender: First country to adopt Bitcoin as legal tender in September 2021.
- Implementation Date: September 7, 2021.
Bitcoin Initiatives:
- Chivo Wallet: A government-backed digital wallet for Bitcoin transactions. Users receive a $30 bonus in Bitcoin upon registration.
- Bitcoin City: Project to build a city powered by geothermal energy, aiming to mine Bitcoin and promote economic growth.
- Bitcoin Bonds: Plans to issue bonds backed by Bitcoin to fund infrastructure.
- Mining Operations: Use of geothermal energy for Bitcoin mining.
Economic Impact:
- Remittances: Aimed at reducing the cost of remittances.
- Financial Inclusion: Increase access to financial services for the unbanked.
Regulatory Framework:
- Bitcoin Law: To foster innovation, job creation, and financial inclusion.
- Capital Gains Tax: No tax on Bitcoin transactions.
International Relations:
- IMF and World Bank: Initial resistance and warnings about Bitcoin risks.
- Freedom Visa Program: Residency for Bitcoin investors.
Bitcoin Adoption Scorecard:
| Category | Details | Score (Out of 5) |
|---|---|---|
| Adoption | Bitcoin as legal tender, widespread use | 4 |
| Innovative Projects | Bitcoin City, bonds, geothermal mining | 4 |
| Economic Impact | Impact on remittances, financial inclusion | 3 |
| Financial Stability | Concerns over volatility and fiscal policy | 2 |
| Public Opinion | Mixed; enthusiasm from some, skepticism from others | 2.5 |
| Infrastructure | Development of necessary tech infrastructure | 3 |
| Global Influence | Pioneering role in crypto adoption | 4 |
| Regulatory Environment | Clear laws but facing international scrutiny | 3 |
| Security Practices | Efforts to promote safe Bitcoin usage | 2 |
| Future Potential | High potential for growth in crypto sector | 4 |
| Overall Score | 3.15 |
Notes:
- Adoption: El Salvador's pioneering move scores high for innovation but faces challenges.
- Economic Impact: The real impact is still under observation due to Bitcoin's volatility.
- Financial Stability: Lower score due to lack of central control over Bitcoin's value.
- Public Opinion: Mixed feelings among Salvadorans about Bitcoin adoption.
- Security Practices: Ongoing development of cybersecurity and education.
- Future Potential: Could set a precedent if managed effectively.
This profile and scorecard provide a snapshot of El Salvador's Bitcoin journey. The scores reflect current perceptions, which might evolve as the country adapts to cryptocurrency on a national scale.