• El Salvador’s president tweets about plans to build an animal hospital with bitcoin profits

  • El Salvador’s president, Nayib Bukele, explained in a series of tweets on Saturday that the country’s $4 million in bitcoin profits will be used to build a modern-looking pet hospital.

    Bukele stated that the trust El Salvador established to assist in the legalization of Bitcoin now has a surplus as the cryptocurrency’s value has increased. El Salvador’s lawmakers approved the $150 million fund before Bitcoin became legal currency on September 7, and the country has also purchased 700 bitcoins.

    Bukele explained how the trust works and why it has a surplus in a series of tweets on Oct. 9. According to the president, the amount of funds in this trust, known as FIDEBITCOIN, is set by law in dollars. The balance sheet of the trust includes both dollars and bitcoin. Chivo, the trust’s operating company, must pay that sum in dollars to El Salvador’s development bank Bandesal. Chivo is also the name of the free wallet app that Salvadorans use to send remittances and make digital payments to businesses in both dollars and bitcoin.

    The trust now has a $4 million surplus, according to Bukele. Chivo can get rid of those millions without affecting the total amount in the trust, which keeps the same amount of bitcoin even if the value of the US dollar falls.

    “By the way, we’re not selling any BTC; instead, we’re using the USD portion of the trust, because the BTC portion is now worth more than when the trust was established,” Bukele added in an English-language tweet. He also stated that the pet hospital’s value “will most likely increase in relation to USD.”

    One of Bukele’s tweets includes a video montage of the pet hospital, which has an exterior sign that reads “Chivo Pets” and the words “Veterinary Hospital” in Spanish. In addition to standard offices, the facility would include areas for emergency vet appointments, operations, rehabilitation, and grooming, as well as a laboratory, classrooms, an auditorium, and coworking space.

    For the first time since May, the market capitalization of Bitcoin has surpassed $1 trillion.

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