The government of El Salvador is embarking on its next bitcoin-related project, which involves building schools using state profits from the original.
According to President Nep Bukele, the profits, or “profits,” from the state’s Bitcoin Trust account will be used to build 20 schools. On Tuesday, a presidential spokesperson tweeted:
“When this project was launched, we didn’t make as much money on FIDEBITCOIN [a government account for BTC] as we do now. So we decided to set up our first 20 bitcoin schools.”
A Bukele spokesperson also said that profits from previous bitcoin (BTC) purchases will benefit people and no Salvadoran taxes will be imposed on the new venture.
Local media reported that the construction of 20 new schools will help expand crypto education for local residents and will be part of the 400 planned schools for the My New School Program. In October 2020, the Central American Bank for Economic Integration approved a commitment of $200 million to El Salvador to encourage education expansion.
In mid-October, the president announced that the government would spend $4 million from the Bitcoin Trust to build a new veterinary hospital in the capital, San Salvador.
El Salvador’s controversial bitcoin law officially went into effect on September 7, but the first day of legal tender placement was overshadowed by technical flaws in the state-owned Chivo wallet.
On Thursday, Cointelegraph reported that El Salvador bought another 420 BTC, bringing the total supply to 1,120 BTC. With current prices of $63,000, this costs about $70.5 million.
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ElSalvadorBTC, the Twitter channel that tracks bitcoin purchases in the country, reports $12 million in profits so far with an average purchase price of $53,062.
The account also tracks the $30 incentive gifts the government gave to residents to encourage Bitcoin adoption. The tracker said on Tuesday that the $30 BTC issued to Salvadorans on July 9 is now worth about $38. Anthony Pompliano’s brother, Joe commented:
“More people now own more Bitcoin wallets than traditional bank accounts, and for the first time in their lives, they have seen their purchasing power increase by more than 30%. It’s a fun experience.”