Another surprising statement came after El Salvador, the country of Central America, which gave intense immigration to the USA due to poverty and gang violence, converted Bitcoin into legal currency in order to recover the economy and avoid the commissions on remittances.
“I have instructed the president of LAGEoSV, our state-owned geothermal power company, to draw up a plan for very cheap, 100 percent clean, percent renewable, zero-emissions energy plants from our volcanoes for Bitcoin mining.” Nayib Bukele stated in his tweet:
I’ve just instructed the president of @LaGeoSV (our state-owned geothermal electric company), to put up a plan to offer facilities for #Bitcoin mining with very cheap, 100% clean, 100% renewable, 0 emissions energy from our volcanos 🌋
This is going to evolve fast! 🇸🇻 pic.twitter.com/1316DV4YwT
— Nayib Bukele 🇸🇻 (@nayibbukele) June 9, 2021
“This will evolve fast!”
Bukele said, “Our engineers have informed me that they have drilled a new well from our volcanoes that will deliver approximately 95 megawatts of 100 percent clean, zero-emissions geothermal energy.” and shared a video of a newly drilled geothermal well a few hours later. Stating that they started to design a full Bitcoin mining center around this, the President of El Salvador said that the spray from the well in the video was pure water vapor.
Famous enough for its volcanoes to make tourism, El Salvador is the largest geothermal energy producer in Central America. Currently, about a third of the estimated 644 megawatts potential is used, geothermal accounts for 20 percent of total energy production. However, it is known that environmental organizations warn that geothermal energy is not innocent at all and that it causes great harm to nature and agriculture.
Yesterday, in the El Salvador parliament, the law, which includes making money transactions with Bitcoin, exempting the conversion of Bitcoin from other currencies from the capital gains tax, giving the right to reside and live in El Salvador in exchange for 3 Bitcoins, was approved by 84 deputies against 62.
William Soriano, deputy of the ruling New Ideas Party, said, “Bitconists all over the world, the time has come. We are ready. We have done our part, now you have the ball.”
While explaining his goals with a video addressing the biggest Bitcoin event in history held in Miami, USA on June 5. Bukele said, “It will create employment in the short term and will enable thousands of people to participate in the financial system.”
The small Central American country with a population of 6.5 million abandoned its own currency in 2001 and switched to the US dollar. The aim was to make it easier for them to remittance to their home country, as 1 in 4 Salvadorans immigrated abroad, mostly to the United States. However, this has left the economy open to US pressure, sanctions, and financial fluctuations beyond the government’s control.
The money that Salvadorans sent from the United States was estimated at $6 billion last year. It made up about 30 percent of the country’s economy.
“More than 70 percent of El Salvador‘s active population does not have a bank account. They are not in the financial system.” said Jack Mallers, the founder of the mobile payment application called Strike, which El Salvador will be used for Bitcoin transactions.
Arguing that Bitcoin can protect a developing country’s economy from fiat inflation, make it more inclusive, Mallers said:
“We want to make international payments free of charge. We aim to solve the problems of the regions that need remittance the most… Companies providing these services in the country receive a commission of 10 percent or more for international money transfers. These funds sometimes take days to reach the country.”