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El Salvador to build veterinary hospital using profits from Bitcoin trust

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El Salvador uses part of the profits from Bitcoin (BTC) transactions to build a veterinary clinic. President Nayib Bukele announced this on October 10.

“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,” Bukele wrote.

Thus, at the end of August, the Legislative Assembly of the country agreed to create a fund worth $150 million to ensure the exchange of Bitcoin and dollars.

“Accounting problem” in the trust

In addition, according to Bukele, there was an “accounting problem” in the trust. Against the background of the growth of Bitcoin quotations, a surplus of $4 million appeared in the structure, which the “state-owned Chivo fund management company” can dispose of without affecting its volume.

“Bitcoins and US dollars are stored on the balance [of the trust]. By maintaining the same number of BTC, even if the number of USD decreases. We can invest $4 million in some project,” the president explained.

Earlier, the state started mining the first cryptocurrency on geothermal volcanic energy. Bukele noted that engineers are still testing and installing equipment.

Vitalik Buterin’s opinion

Recall that the founder of Ethereum Vitalik Buterin called the legalization of Bitcoin in El Salvador “reckless”.

“Forcing businesses to accept a certain digital currency is contrary to the ideals of freedom that members of the cryptocurrency community should value. Additionally, this tactic of pushing BTC to millions of people in El Salvador at the same time with almost no attempt at prior education is reckless. And risks a large number of innocent people getting hacked or scammed. Shame on everyone (ok, fine, I’ll call out the main people responsible: shame on Bitcoin maximalists) who are uncritically praising him [President Nayib Bukele]”. Buterin wrote on Reddit.

One of the users asked if Buterin would have said the same about the supporters of Ethereum if President had made a similar decision regarding the second-largest cryptocurrency by capitalization. He replied that he had repeatedly criticized “users and applications”.

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