El Salvador Step Forward to Open Second Bitcoin Embassy in Texas

• IMF released El Salvadorian economy report on February 10, 2023.
• El Salvador and Texas had a commercial exchange of $1.24 million.

While the International Monetary Fund (IMF) ‘warned El Salvador’ against boosting the government’s involvement with Bitcoin (BTC), the Central American country plans to open a second “Bitcoin Embassy” in Texas after establishing its first one in Lugano, Switzerland. 

According to a Twitter post from Milena Mayorga, El Salvador’s Ambassador to the United States, she and other representatives discussed with Joe Esparza, the deputy secretary of the Texas government. 

Milena Mayorga stated that;

We discussed the opening of the second Bitcoin embassy and the extension of commercial and economic exchange initiatives.

Also, Mayorga added, “In 2022, El Salvador and the State of Texas had a commercial exchange of $1,244,636,983”. 

El Salvador’s Endless Support of Bitcoin

El Salvador is the world’s first sovereign country that accepts Bitcoin as a legal tender. Following that, the government has constantly obtained BTC to increase the value of the country’s currency. 

Also, since then, the nation has taken steps to develop the first sovereign debt securities backed by BTC. And the government host as a home to several projects that only use Bitcoin. Although, this new Bitcoin embassy initiative has created a new connection between Texas and the country of Central America.

However, on February 10, 2023, the IMF released a final report on the El Salvadorian economy and issued a warning over the use of Bitcoin in El Salvador due to the crypto market’s speculative nature. Also, it stated that “risks should be addressed.” 

Further, IMF believes since September 2021, when El Salvador accepted bitcoin as an official tender, growth has been weak. Due to the legal and financial concerns associated with the issuance of tokenized bonds, the International Monetary Fund also advised El Salvador to reconsider.