For me, the most potent policy of El Salvador was to reduce crime in the country. The current Haiti gang violence is a typical example of what was happening in El Salvador before the government of Nayid Bukele took over. Violent gangs were in control of the country before he took over.
Without peace, no investor will consider putting money in the country. Citizenship by investment policy would never be attractive if the country was not safe. The country has experienced an increase in the rate of foreign tourists thanks to the crackdown on violent gangs. We are hoping that Bitcoin will reach the $100k mark but it seems that El Salvador will not be selling its Bitcoin holding anytime soon. The country will seek other means of fulfilling its financial obligations to the IMF.
Bukele's position is very clear, after he made the Bitcoin wallet public, a few days later he announced that he would continue to buy one Bitcoin every day. In my opinion, this is the right direction, I mean the goal is to increase the number of bitcoins, but I may not agree that this should be done now, when bitcoin has increased so significantly in price.
Of course, if you consider that the price will reach 100k, and I’m almost sure of this, then buying now also makes sense. At one time, I stopped buying when the price reached 30k, now I think that perhaps I stopped early, but this was my strategy and I will stick to the original plan until the end of the bull run.
For Bukele, this is all perceived differently, because he buys bitcoins not with his own money, but with taxpayers’ money, which is much easier to do and, of course, it is very important that in the end he does not think that these are his bitcoins, but understands that they belong throughout the country, and to every citizen of El Salvador. In any case, Bukele is doing the right thing, he is accumulating bitcoins and one day this may help El Salvador gain higher status.
I am still bothered by the 1 bitcoin per day idea.. even though there is some symbolism to it, but it is not as practical as either measuring in terms of some dollar amount or maybe measuring within a percentage of the countries revenues.
~Snip
It is true, until now Bukele has made major changes or rotations in El Salvador. Which started with the arrest of an entire armed gang in El Salvador.
More than 64,000 suspected criminal gang members have been arrested by El Salvador authorities in an effort to combat thuggery.
Source: https://www.bbc.com/indonesia/majalah-64781862This is clearly an action that is very rarely carried out by a president or leader of a country anywhere. So you could say that the actions taken by Nayib Bukele against gangsters in El Salvador could be said to be quite extreme.
But despite this, El Salvador is now a safer country than before.
Apart from that, regarding Nayib Bukele's plan to buy 1 bitcoin per day, perhaps this statement cannot be fully justified. The reason is that this statement is still unstable considering that the price of bitcoin is currently experiencing an increase. Meanwhile, Bukele said he would buy 1 bitcoin per day when bitcoin was cheap.
The President of El Salvador, Nayib Bukele, announced on Twitter on Thursday, November 17, 2022 that his country will purchase one bitcoin every day.
Source: https://www.liputan6.com/amp/5128803/presiden-el-salvador-nayib-bukele-sebut-bakal-beli-1-bitcoin-setiap-hariIn that year the price of bitcoin was quite far from what it is now. So you could say that that year Bukele bought 1 bitcoin with tax money from the people of El Salvador.
However, if Nayib Bukele plans to buy 1 bitcoin per day with taxes coming from the people of El Salvador now. In my opinion, this action could be said to be too hasty. Because as JJG said, tax money is usually used for certain needs in that country (El Salvador). Such as to repair damaged roads, damaged schools, or for other costs in that country (El Salvador). And in my opinion, Nayib Bukele cannot completely avoid this (state development costs). Because of course in a country there will always be things that need to be addressed and improved. Therefore, tax money obtained from the people in El Salvador will definitely be used for needs in El Salvador. And the rest is then used to buy bitcoin. Maybe that's how I understand it from my perspective.