Tuesday July 5, 2022 – We have reported on the El Salvador experiment in this space. Last year on September 7, 2021, El Salvador made the US Dollar and Bitcoin its national currency. The country provided each citizen with an app loaded with $30 of Bitcoin (roughly 1% of the annual income) in an effort to spur a cryptocurrency economy.
As the price of Bitcoin collapsed, El Salvador “bought on the dip.” Last week El Salvador El Salvador purchased 80 more bitcoin (BTC) at $19,000 each extending the country’s holding to 2301.
El Salvador had plans to float a $1 billion Bitcoin bond offering to finance building Bitcoin City on the base of a volcano that would provide geothermal energy and also be a source of power for the Bitcoin revolution. That plan is now on hold – looking for the end of the bear market.
Attorney Steven A. Leahy reviews the El Salvador strategy and comments on the long term risk on Today’s Tax Talk.