The government of El Salvador has announced the creation of a public institution responsible for it oversee all projects related to Bitcoin or blockchain technology. So the country is continuing its strategy of integrating Bitcoin into the daily life of the country. This article has the opportunity to take stock of the development of this new public institution and its consequences for the crypto market.
A new step in the establishment of Bitcoin and crypto in the country’s economy
the The creation of an office has just been confirmed by the government of El Salvador specially constituted to oversee all projects related to Bitcoin and blockchain technology. The constitution of the public institution was validated by Decree No. 49, published in the Official Gazette on 17 November.
Tea @bitcoinofficesv We will publish our first report soon
The subject will be the subject of #Bitcoin mining in El Salvador
— Bitcoin Office (@bitcoinofficesv) November 25, 2022
National Bitcoin Office (ONBTC) It should therefore have extensive powers to design, advise, program, diagnose, coordinate, analyze, measure and analyze Bitcoin-related programs and projects that can contribute to the economic development of the country ones. It can also cooperate with other countries to promote blockchain development in the country.
It should be a a true public institution with operational autonomy within the Presidency of the Republic. It should also interact with other national bodies, such as municipalities and ministries.
A great initiative despite the fall in the crypto market!
Despite the collapse of the crypto markets, the government of the small Central American state remains in its boots and actively pursuing its national Bitcoin deployment strategy. The legal acceptance of Bitcoin has very positive effects on the country’s economy anyway. The country recorded, for the first time in its history, double-digit GDP growth in 2021.
The 41-year-old President of El Salvador, Nayib Bukele, is known to be a strong supporter of cryptos and Bitcoin. It is therefore expected that Bitcoin’s national office is directly linked to the presidency of the Republic. President Bukele should also hire the director of the agency himself. This public institution will also have the right to analyze the profile of anyone who wants to meet with the president to discuss the nation’s blockchain strategy.
A new step towards liberalization of local legislation applicable to cryptocurrency?
The public institution should be responsible for it recommend new standards and appropriate regulations to foster the development and integration of blockchain technology in the local economy.
New projects in the field of blockchain?
the Salvador was already a step ahead of other nations by becoming the first nation in the world to accept Bitcoin as legal tender in the country. It is very likely that this new public institution will be a springboard for launching new projects with high potential in the blockchain market.
It is clear that this public institution should expanding the scope of his skills to other crypto currencies. Bitcoin is gradually losing market share to its great rival, Ethereum. The government of El Salvador presented a bill a few days ago that was intended to establish a new legislative framework for the crypto industry by forming a designated commission.
The constitution of this new public institution should specialize in blockchain technology serve as an incubator of ideas for government and industry professionals. We must expect in my opinion a review of the country’s law regarding the regulation of the activity in the fight against money laundering or for example the issue of bonds covered by Bitcoins.
Blockchain technology at the heart of the education system
The public institution should also develop educational programs to train Salvadoran youth. With a national budget that already spends 3.4% (2019) of its budget on expenses related to national education, this is clearly a big step forward. We do not yet know all the details to the extent that the public institution will have to develop all these new programs.
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