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El Salvador to build 20 schools from Bitcoin Trust

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El Salvador will build 20 schools on the profit from investments in cryptocurrency. The press service of the President of the country, Nayib Bukele announced this on Twitter.

Bukele’s spokesperson also stated that proceeds from previous BTC purchases would be used to help the people. Also, that no Salvadoran taxes will be used in the new project.

According to local media, the construction of 20 new Bitcoin schools is an addition to 400 schools under the “My New School” program. The Central American Bank for Economic Integration granted $200 million; in financing for El Salvador’s school expansion incentive in October 2020.

Investments in the first cryptocurrency

Earlier, Bukele announced that the government will build a veterinary clinic using profits from Bitcoin trust. “We will start building a veterinary clinic using the profits from BTC. By the way, we do not sell Bitcoin, but use the dollar part of the trust. Since the cryptocurrency stored on its balance sheet is now worth more than at the time of creation,” he wrote.

Previously, The State Fund has acquired an additional 420 BTC. Bukele stressed that the authorities have already received a certain profit from investments in the first cryptocurrency. The latest purchase increased its national stack to 1,120 BTC, which at the time of writing is about $70 million.

Since state Bitcoin trust stores BTC and US dollars, against the background of the growth of quotations of digital gold, there is an excess that the managers of the structure can withdraw from the accounts.

Unconstitutional bill

A law on recognizing Bitcoin as an official means of payment came into force in El Salvador on September 7. The opposition called the relevant bill unconstitutional.

According to the law, prices in El Salvador can be set in Bitcoin. And you can also pay taxes in cryptocurrency. The Bitcoin exchange will not be subject to capital gains tax. While you can exchange Bitcoins for dollars (the main currency in El Salvador) at the market rate.

Recall that in June, Jaime Guevara from the opposition The Farabundo Marti National Liberation Front party initiated the trial. In Oscar Artero’s opinion (co-signer of the lawsuit); the authorities have not developed a sufficient legal framework for recognizing digital gold as a means of payment. The legalization of cryptocurrency has led to the sale of government bonds.

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