What is the benefit to El Salvador to buying and holding bitcoin? Does that money make them able to loan money at a cheaper rate?

Benefits of Buying and Holding Bitcoin for El Salvador

Buying and holding bitcoin can offer several advantages for El Salvador:

Bitcoin is recognized as a growing store of value, with predictions indicating that its value will increase over time. Holding bitcoin could provide a significant asset for El Salvador.

As the value of bitcoin rises, El Salvador could benefit economically and strengthen its reserves. This growth in financial reserves may enhance the country's credibility in financial markets and enable access to loans at lower interest rates.

With the increasing acceptance of bitcoin as a common currency, El Salvador could potentially use bitcoin directly in its financial transactions instead of fiat currencies, achieving greater financial independence.

Bitcoin allows El Salvador to be somewhat independent from the global financial system dominated by the dollar and central banks. This could serve as an effective tool for reducing economic pressures and increasing financial freedom.