El Salvador: Bitcoin is adopted as legal tender and president announces plan to mine the currency with volcano energy
On 06 June 2021, the Congress of El Salvador passed the Bitcoin Law, which made bitcoin legal tender in the country. Hours later, President Nayib Bukele reported that he instructed the president of the state-owned geothermal energy company LaGeo to create a plan and offer bitcoin mining facilities using volcanic energy. Bukele said on Twitter that a new well has already been dug, which will provide 95 MW of 100% clean, emission-free geothermal energy provided by the country's volcanoes. Given the lack of official information provided by the government on the matter, engineering and technology specialists organised a space to answer the doubts of civil society on the subject. With the hardware (physical and computer equipment) required for bitcoin mining, the high cost of acquiring it was pointed out and doubts arose among citizens as to which companies would be used to acquire it.
Three months later, on 7 September, El Salvador became the first country to adopt bitcoin as legal tender, in a move that has caused the nation and many other states to debate the opportunities and dangers of cryptocurrencies. To encourage their use in a country where most of the population does not have access to the internet, the government is inviting Salvadorans to download a new digital wallet app that gives away US$30 in bitcoins to all citizens. The plan has also highlighted the environmental impact of cryptocurrencies, as their production uses more energy than many countries, which the World Bank warned about. Several demonstrations were held in protest against the entry into force of the controversial law. Citizens protested against Bukele's government and sought to present a piece of correspondence containing the petition to repeal the Bitcoin Law, but were met with barricades and the UMO to prevent their advance.