For 2024, the Central Reserve Bank of El Salvador (BCR) projects economic growth that could be between 3 and 4%, in an advance that, in the opinion of the organization, will be driven mainly by public and private investment, tourism, and the demand for exports of goods. This is a projection announced on June 27 by the president of the BCR, Douglas Rodríguez, who shared some economic data of the country on X. «El Salvador will advance much more than in the last three decades,» Rodríguez promised, highlighting that during the first quarter of 2024 the country will advance much more than in the last three decades,» Rodríguez promised, highlighting that during the first quarter of 2024 the country will advance much more than in the last three decades. had a growth of 2.6%«approaching the 3% achieved throughout last year.» The official estimates that Inflation will be between 0.5% and 1%a rate that will fluctuate based on the international price of oil and its derivatives, as well as the diversification of El Salvador's energy matrix with renewable sources. «We are facing very palpable growth and the data we have recorded to date give us an indication that we will have greater growth than in the last 30 years,» he added.
Among the factors that influenced the economic performance of the first quarter of 2024, the continuity of security strategies implemented by the Government of President Nayib Bukele, as well as other sporting, commercial and tourist events, continue to stand out. pic.twitter.com/0IYWxfpNGg— Central Bank SV (@bcr_sv) June 27, 2024
Bitcoin, a silent hero
Rodriguez's statements are made in a context in which attention to the economy has become on one of the main axes of the government of Nayib Bukeleduring his second term. As announced a few weeks ago by Salvadoran Vice President Félix Ulloa, they have several tools at hand to achieve this goal, and bitcoin is one of them.
Although the digital currency was not directly named by the president of the BCR as one of the reasons explaining the growth, its presence is implicit in Many of the factors that are influencing economic indices. «The country's economic dynamics, added Rodríguez, are greatly influenced by the improvement of citizen security, as well as the holding of international events and the application of policies that attract private investment and a lot of tourism«. Precisely two of the activities where bitcoin is most involved. The country's attractiveness is evident, taking into account that El Salvador is the fastest growing tourist destination in the Western Hemisphere. This is demonstrated by data from a study carried out by the World Tourism Organization, which positioned the Central American nation as the fourth fastest growing tourist destination in the worldranking only below Qatar, Saudi Arabia and Albania. In terms of investment, efforts have also been made, through the enactment of laws that exempt the payment of taxes and that provide many facilities for new companies to arrive in the country, especially those linked to the technology sector (where bitcoin is the protagonist). With the cryptocurrency, the president has made a bet in order to attract investors, as ways to boost Salvadoran finances. As BitcoinDynamic has reported on several occasions, steps in search of growth have been taken with many of the measures Cryptocurrency sector startups. This, through the enactment of laws favorable to its use, investing in BTC, mining bitcoin, promoting education and encouraging The arrival of bitcoiners from all over the world willing to put capital into the country. This explains the role that bitcoin plays in the Salvadoran government's plans, especially at a time when Bukele has reaffirmed his conviction to keep BTC as legal tender. Even going against the requests of the International Monetary Fund (IMF) and delaying the delivery of a loan.
Bitcoin mining will play a key role
There are several programs that continue to be launched as a way to attract investments, and the delivery of express nationality to bitcoiners is one of them. The idea is Granting residence to more than 1,000 people who decide to invest $1 million in BTC or tether (USDT). The purchases that the government has made since 2021, adding bitcoins to the Treasury, They are also part of the strategyand they already generate unrealized profits in the order of USD 57.3 million. However, one of the activities that is shaping up to generate the most growth is bitcoin mining. Pierre Rochard, vice president of research at Riot Platforms, recently spoke about this when he gave a presentation to CUBO+ students, talking about The boost that mining can give to El Salvador. Rochard explained that mining offers advantages in the energy sector. This is because mining companies that set up in the territory and build their own plants will contribute to lower the price of electricity.
The lower the cost of energy for industrial and residential users, the more economic growth we will have. Every sector of the economy needs electricity, and the cheaper the energy is, the more uses we can put it to and improve our quality of life. Pierre Rochard, Vice President of Research at Riot Platforms.
This fact is already visible in the country with companies such as Volcano Energy, which announced that from 2025 it will mine in the territory with its own solar and wind power plants, which will generate 130 megawatts (MW) initially for its bitcoin operations, but would also inject surpluses into the local grid at low cost. In fact, the company has already generated 474 bitcoins using geothermal energy. These are the plans that demonstrate the role that will follow playing the digital currency created by Satoshi Nakamoto in the growth program that Bukele is preparing. A goal that is not without obstaclesconsidering that BTC adoption levels among the population are still low. However, Bukele's insistence, despite criticism from his opponents, so far seems to have paid off.