- El Salvador expects Bitcoin’s value to rise significantly with Trump’s pro-crypto policies and strategic reserve plans.
- The IMF’s $1.4 billion loan stipulates voluntary Bitcoin use in the private sector, reducing government involvement.
Nayib Bukele, the President of El Salvador, has expressed high expectations for Bitcoin in 2025, particularly with Donald Trump’s upcoming inauguration as President of the United States.
Bukele foresees an “exponential revaluation” of Bitcoin driven by Trump’s administration, which has signaled plans to create a strategic Bitcoin reserve, potentially reshaping global crypto dynamics.
Bukele affirmed that the nation stands to benefit significantly from a Bitcoin boom, aligning with Trump’s vision to position the U.S. as the global hub for crypto currencies.
Trump has attributed Bitcoin’s climb past $100,000 in December to the market’s anticipation of his pro-crypto policies.
“I personally believe that this year and the others, but especially this year because of Trump’s inauguration (…) is going to be a very important year for bitcoin and for the entire ecosystem,” Bukele said at a press conference at Casa Presidencial.
In December, El Salvador secured a $1.4 billion loan agreement with the International Monetary Fund (IMF). The deal stipulates that Bitcoin adoption for private businesses remains voluntary, with the government’s involvement in crypto infrastructure gradually decreasing.
Controversy Over Bitcoin Trust and Subsidies
In a parliamentary session, opposition lawmaker Claudia Ortiz proposed liquidating El Salvador’s Bitcoin Trust, initially funded with $150 million, to redirect proceeds toward essential public subsidies.
Bukele, however, dismissed the proposal, defending Bitcoin as a “solid investment” that has already generated $300 million in gains.
“$300 million profit.” “Now it’s ‘they should use the bitcoin profits in such and such, but if you didn’t believe in those bitcoin profits, now you are the ones who are going to decide what the bitcoin profits are going to be used for, the opposition,” Bukele criticized.
The debate reflects broader discussions on Bitcoin’s role in El Salvador’s financial strategy, with Bukele doubling down on its potential amidst mounting international skepticism.
Tether’s Headquarters Move to El Salvador
Another development came with Tether’s announcement of relocating its headquarters to El Salvador. This reinforces the country’s ambition to become a global crypto innovation hub, with Tether joining a burgeoning ecosystem driven by forward-looking policies and supportive regulations, as reported in ETHNews.
Expectations Amid Trump’s Pro-Crypto Presidency
Bukele’s optimism also extends to the global Bitcoin ecosystem, predicting a friendlier regulatory environment under Trump’s leadership. El Salvador, with its established foothold in crypto adoption, is poised to capitalize on this anticipated shift.
“We are waiting to see what is going to happen in the coming days, even with the Trump administration. I personally believe that this year, especially this year because of Trump’s inauguration and the maturation of BTS, I think this year is going to be very important for bitcoin and for the whole ecosystem,” he considered.
Trump’s return to the White House, coupled with his promises to reshape crypto policy, may accelerate Bitcoin adoption and create favorable conditions for digital currencies worldwide.
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