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El Salvador: $4 million for a veterinary hospital with Bitcoin profits

The President of El Salvador, Nayib Bukele, proposed on Twitter to use $4 million of Bitcoin profits to open a veterinary hospital. 

The BTC profits would be registered in FIDEBITCOIN, the fund trust that El Salvador created to help make Bitcoin legal tender.

El Salvador and the $4 million in Bitcoin profits

Here’s how the full tweet from Bukele:

Les tengo una sorpresa

¡Qué nervios!

— Nayib Bukele (@nayibbukele) October 9, 2021

“I have a surprise for you. I’m so nervous! FIDEBITCOIN (the Bitcoin adoption trust) has a dollar value by law. However, it has dollars (USD) and bitcoin (BTC) on its balance sheet. Chivo, the state-owned company that manages FIDEBITCOIN, has to settle this dollar amount for BANDESAL. But there was an accounting ‘problem’. Namely, with the same amount of USD and BTC in the trust, the trust is now worth more, because Bitcoin has gone up in value. So now, FIDEBITCOIN has a “surplus” of USD 4 million. Therefore, the state-owned company Chivo can dispose of $4 million, without affecting the amount of the trust. This is done by keeping the same amount of BTC, even if the amount of USD is reduced. So we can invest $4 million in some project. And we decided to invest some of that money in this: A VETERINARY HOSPITAL for all our furry little ones. It will include: 12 basic clinics, 4 emergency clinics, 4 operating theatres, Rehabilitation Area, Isolation, Admissions, Recovery, hairdressing salon, 7 offices, 14 coworking spaces, Laboratory, 2 classrooms, 1 auditorium. There are 384 consultations, 128 Emergencies, 64 Surgeries, 63 Admissions, 64 Hairdressing, 128 Rehabs, 32 CT scans, 32 X-rays. All this, every day”.

Furthermore, in another tweet, Bukele also specifies that they are not selling BTC but, since it is legal tender in El Salvador, they are simply using the dollar part of the trust.

Vitalik Buterin

El Salvador and Vitalik Buterin’s comment

Yesterday, Vitalik Buterin, co-founder of Ethereum, also reportedly commented on El Salvador’s decision to make Bitcoin legal tender, teasing bitcoin maximalists.

“El Salvador was ‘reckless’ in making Bitcoin legal tender, Ethereum co-founder Vitalik Buterin says. He also said Bitcoin maximalists should feel ashamed for uncritically praising Nayib Bukele”.

Profits in Bitcoin for Salvadorans

In addition to the fund trust that generated $4 million in profits from Bitcoin, a week ago President Bukele also pointed out that all Salvadorans in possession of the official Chivo wallet gained 35% on their BTC.

In September, when $30 was given to new Chivo users, the average price of BTC was below $46,000. At the time of writing, BTC is worth more than $56,000.

 

The post El Salvador: $4 million for a veterinary hospital with Bitcoin profits appeared first on The Cryptonomist.

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