El Salvador to build 20 ‘Bitcoin Schools’ with surplus from Bitcoin Trust

The government of El Salvador is embarking on its next Bitcoin-related project which involves building schools using profits the nation has made on the asset.

Profits or the “surplus” from the state’s Bitcoin Trust account will be channeled into the construction of 20 schools according to President Nayib Bukele. On Nov. 2, the Press Secretary of the Presidency tweeted:

“When this project was started, we had not made as much money in FIDEBITCOIN [state BTC Trust account] as we have made now. So we have decided to make the first 20 Bitcoin Schools.”

Bukele’s spokesperson also stated that profits from previous BTC purchases will go towards benefiting the people and no Salvadoran taxes will be touched for the new project.

Local media reported that the construction of the 20 new schools will support the expansion of cryptocurrency education for locals and be part of the 400 schools planned for the “My New School” program. In October 2020, the Central American Bank for Economic Integration (CABEI) approved the financing of $200 million to El Salvador for the education expansion incentive.

In mid-October, the President announced that the government will spend $4 million from the Bitcoin Trust to construct a new veterinary hospital in the capital San Salvador.

El Salvador’s controversial Bitcoin Law officially came into effect on Sept. 7, but its inaugural day of legal tender status was marred by technical glitches with the state Chivo wallet.

On Oct. 28, Cointelegraph reported that El Salvador purchased a further 420 BTC bringing its total stash to 1,120 BTC. At current prices of $63K, this is worth around $70.5 million.

Related: El Salvador acts on Bitcoin price dip and buys 150 BTC

El Salvador BTC, a Twitter feed tracking the nation’s Bitcoin purchases, reported that $12 million in profit has been made so far, based on an average purchase price of $53,062.

The account also tracks the $30 stimulus handout that the government gave to citizens to encourage the adoption of Bitcoin. The $30 in BTC given to Salvadorans on July 9 is now worth around $38, the tracker reported on Nov. 2. Anthony Pompliano’s brother Joe commented:

“More citizens now have Bitcoin wallets than traditional bank accounts, and for the first time in their life, they have seen their purchasing power appreciate by more than 30%. This is a fascinating experiment.”


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El Salvador to build $4M veterinary hospital using profits from Bitcoin trust

Salvadoran president Nayib Bukele has announced plans to invest part of the $4 million worth of profits the country has amassed from its Bitcoin holdings to invest into constructing a new veterinary hospital in the local capital of San Salvador.

Taking to Twitter on Oct. 10, Bukele revealed that El Salvador’s state-operated Bitcoin trust currently holds $4 million worth of profits gleaned from its recent Bitcoin embrace.

Bukele announced that part of the funds will be invested into constructing a veterinary hospital featuring four operating rooms, four emergency clinics, 19 offices, and a rehabilitation area. “We decided to invest a part of that money in this: a veterinary hospital for our furry friends,” he said.

Bukele added the facility will aim to be able to perform 64 surgeries, respond to 128 emergencies, and tend to nearly 400 general appointments daily, sharing a computer-generated mock-up of the hospital to social media.

The news was met with mixed reactions on Twitter, with many Salvadorans suggesting alternative uses for the country’s crypto profits.

According to a rough translation, Twitter user Norma De Serrano said it would be better for the money to be invested in improving the existing medical facilities across the country, emphasizing that many hospitals and health units “need to be improved” — with many other commenters expressing similar concerns.

Others criticized the government for failing to invest in infrastructure outside of the country’s capital.

Related: What Bitcoin correction? BTC price holds $55K despite several bearish indicators

The news comes as Bitcoin’s market capitalization recently broke above $1 trillion for the first time since May, with BTC rallying nearly 20% from $47,000 to more than 55,000 during the past week.