El Salvador Opens Bitcoin Embassy in Texas to Boost Adoption

The small Latin American country continues its Bitcoin journey with a brand new embassy in Texas. In a recent tweet, Milen Mayorga, El Salvador’s Ambassador to the United States, revealed the move and pointed out that the new Bitcoin embassy will be focused on “the expansion of commercial and economic exchange projects.”

Indeed, Texas and El Salvador have engaged in substantial trading activity in 2022, transferring $1,244,636,983 between themselves. However, this is not the first time El Salvador has struck a deal with a pro-Bitcoin government. On October 28th, 2022, El Salvador established its first Bitcoin Embassy in Lugano, Switzerland, as part of Lugano’s Plan B.

IMF Admits Bitcoin Risks Haven’t Materialized

The partnership news between El Salvador and Texas comes just five days after the International Monetary Fund (IMF) published their annual report on El Salvador’s progress.

Surprisingly, the IMF admitted that adopting Bitcoin (BTC) as a legal tender has accelerated El Salvador’s economic growth, also pointing out that “unprecedented reduction in crime, and strong remittances and tourism revenues have contributed to the robust activity and investment dynamics.”

On the other hand, the yearly report by the IMF also emphasized that not a lot of local people in the small Latin American country use Bitcoin (BTC), while some have barely heard of it.

The IMF contemplates that Bitcoin’s use “could grow given its legal tender status and new legislative reforms to encourage the use of crypto assets, including tokenized bonds (Digital Assets Law).” In addition, the report concludes that “efforts are underway to develop citizens’ digital skills by partnering with fintech firms.”

Ultimately, the Digital Assets Law has mostly to do with the Volcano bonds – tokenized sovereign bonds, which would enable foreign investors to invest in the Bitcoin Nation. El Salvador’s government expects to raise over $1 billion with the Volcano bonds, which will invest in Bitcoin City’s infrastructure and promote education about the world’s leading decentralized cryptocurrency.

El Salvador’s adoption of Bitcoin (BTC) as legal tender shows the positive impact Bitcoin can bring to society.

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