El Salvador’s President, Nayib Bukele, has announced that the country will invest $2 million in the construction of 20 new schools. The money for these new schools will come from Bitcoin profits.
The buildings of these new schools will be part of El Salvador’s education program called Mi Nueva Escuela. This program started at the beginning of the year and its main goal is to build 400 new schools for a period of three years.
On Monday, President Nayib Bukele stated that the government would use the FIDEBITCOIN trust to construct 20 new schools. The press representative of the presidential office confirmed the news on Twitter.
#ChivoPets | “Cuando se hizo este proyecto no habíamos ganado tanto dinero en el FIDEBITCOIN como hemos ganado ahora. Así que hemos decidido hacer las 20 primeras Escuelas Bitcóin”: Presidente de la República, @nayibbukele. pic.twitter.com/PsQPlMcda9
— Secretaría de Prensa de la Presidencia (@SecPrensaSV) November 2, 2021
President Bukele created the FIDEBITCOIN trust account as a way to further embrace BTC and accept it as legal tender. The Bank for the Development of El Salvador manages the fund, which currently has $150 million in reserves.
Chivo Pets, the animal hospital in El Salvador, was built with $4 million from this fund. It was exactly one of the events for the animal hospital inauguration, where the president mentioned schools as the next project, report local news.
The FIDEBITCOIN fund did not have the same amount of surplus when the project was established as it has now, explains Bukele. It was this reason that inspired them to go on with building 20 new schools with the money from the fund.
Bukele reaffirmed that the infrastructure will be created entirely using earnings from the government’s Bitcoin fund, with no funds coming from taxpayers.
In September, El Salvador became the world’s first country to recognize Bitcoin as legal cash, however, the road to adoption was not easy.
The update was opposed by thousands of citizens, and critics around the world have condemned the government’s plan to force businesses to recognize the asset as a currency.
In a Reddit post on the subject last month, Ethereum co-founder Vitalik Buterin called the policy “reckless.”
El Salvador has been stockpiling Bitcoin in recent weeks, as the asset has risen to fresh all-time highs. When the market fell last week, Bukele said that the country had purchased another 420 Bitcoin, bringing its total holdings to 1,120 Bitcoin.