El Salvador to establish ‘Bitcoin Embassy’ in Texas

• El Salvador to open a “Bitcoin embassy” in Texas.
• This comes after a similar venture last year in Switzerland to encourage the use of cryptocurrencies.

El Salvador is planning to open a “Bitcoin [BTC] embassy” in Texas, El Salvador’s ambassador to the United States, Milena Mayorga, tweeted on 14 February. This news came after a similar venture in Switzerland to encourage the use of cryptocurrencies in 2022.

El estado de Texas, nuestro nuevo aliado.

En mi encuentro con el Secretario Adjunto del Gobierno de Texas, Joe Esparza @TXsecofstate, abordamos la apertura de la segunda Embajada #Bitcoin y de ampliar los proyectos de intercambios comerciales y económicos. 🇺🇸🤝🇸🇻 pic.twitter.com/NcmOjeadl6

— Milena Mayorga (@MilenaMayorga) February 14, 2023

In September 2021, El Salvador legalized Bitcoin as legal tender and became a global force for the world’s largest cryptocurrency, in contrast to regulatory crackdowns on cryptocurrency in other countries.

Mayorga referred to Texas as a “new ally,” and she stated that she had met with Deputy Secretary of the Government of Texas, Joe Esparza, to discuss opening a Bitcoin embassy and expanding commercial and exchange projects. Other than educating the public on the world’s largest, it is unclear as of now what the embassy will do.

In October 2022, El Salvador established a “Bitcoin office” in Lugano, Switzerland. The Swiss initiative is supposed to support initiatives to drive the adoption of Bitcoin and other cryptocurrencies across their respective regions, as well as to foster the exchange of students and talents between El Salvador and Lugano. The two also signed a Memorandum of Understanding (MoU) on economic cooperation.

Not everyone receptive to President Bukele’s Bitcoin plan

President Nayib Bukele has received backlash for the Bitcoin plan from the International Monetary Fund (IMF) and other financial authorities. Bitcoin fell 15% in the hours following passage legislation, making it legal tender, and has since dropped nearly 50%. Most Salvadorans do not use cryptocurrency for everyday purchases.

However, El Salvador’s development bank, BANDESAL, refused to provide information on the government’s Bitcoin purchases.

The Anti-Corruption Legal Advisory Center (ALAC) also criticized the move. The national watchdog tweeted:

“The confidentiality limits the possibility for citizens to access and receive information on the operations carried out with public funds by BANDESAL.”