El Salvador’s President Nayib Bukele and Michael Saylor Discussed Regarding Bitcoin

El Salvador’s Bitcoin holding is around $530 Million. On February 13, Nayib Bukele and Michael Saylor had a meeting with each other about Bitcoin.

Summary

• El Salvador’s President Nayib Bukele and Strategy founder Michael Saylor discussed Bitcoin on February 13.

• The meeting was part of a new legislative law that prohibits Bitcoin use for tax purposes and makes it a voluntary legal tender.

• El Salvador added one Bitcoin to its assets, boosting its Bitcoin holding to 6,077 BTC, worth around $590 million.

• Saylor’s strategy restarted its Bitcoin buying last week, increasing its BTC holdings to 478,740 BTC, valued at nearly $46 billion. 

• The meeting aligns with recent legislative reforms in El Salvador, which will recognize Bitcoin as legal cash in 2021. 

• The IMF has repeatedly opposed El Salvador’s Bitcoin adoption due to financial stability concerns.

The new legislative law in El Salvador stopped using Bitcoin for tax purposes, made it a voluntary legal tender, and aligned itself with IMF loan criteria.

The National Bitcoin Office of El Salvador (ONBTC) reports that President Nayib Bukele and Strategy founder Michael Saylor chatted about Bitcoin on Thursday in Casa Presidencial, the Presidential House of El Salvador. Nayib Bukele posted a photo on X showing his dinner with Michael Saylor.

El Salvador added one Bitcoin to its assets around that time, boosting the amount to 6,077 BTC, worth around $590 million, according to Arkham Intelligence statistics. The buy is part of its daily dollar cost averaging approach.

Saylor’s strategy restarted its Bitcoin buying last week, purchasing 7,633 Bitcoin and increasing its BTC holdings to 478,740 BTC, valued at nearly $46 billion.

ONBTC released additional images from the meeting on Friday, but the specifics remain hidden.

The gathering aligns with recent legislative reforms in El Salvador, which will recognize Bitcoin as legal cash in 2021. The Central American country has revised its Bitcoin legislation in line with a $1.4 billion International Monetary Fund loan arrangement.

“The Bitcoin situation in El Salvador is complicated, and many concerns remain unanswered,” Samson Mow said in a recent post on X. Mow described El Salvador’s Bitcoin situation as a positive development.

Mow noted that the clever modifications to the Bitcoin Law allow El Salvador to comply with the IMF deal while maintaining its credibility. However, he stated that the legislation no longer recognizes Bitcoin as money and instead declares it “voluntary legal tender.”

According to Mow, the revisions prevent Bitcoin payments for taxes and government fees, as well as the government from “touching BTC”. Article 8 of the revisions eliminates the state’s commitment to support Bitcoin transactions, therefore compromising the existence of Chivo, the government-provided cryptocurrency wallet.

The IMF has repeatedly opposed El Salvador’s Bitcoin adoption, citing financial stability concerns. The recent financing arrangement compels the nation to reduce its Bitcoin implementation.

Also Read: El Salvador Purchases 12 BTC After Plan B Event

El Salvador has added 12 Bitcoin to its reserves, totaling 6,068 BTC, following the Plan B event. The government’s confidence in the digital asset is evident in the investment, despite market volatility. The continuous accumulation of Bitcoin could have substantial economic implications for the nation, particularly if its value rises over time. The government’s commitment to Bitcoin’s adoption and its potential for long-term economic influence will depend on the country’s ability to mitigate volatility-related risks and the market’s trajectory.

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