[생글기자 코너] Bitcoin's Global Impact and South Korea's Next Move

The unexpected outcome of the 2024 U.S. presidential election has brought significant rewards for those who bet on Trump’s victory. Especially as Trump emphasized the importance of cryptocurrency, these investors have seen notable profits. Notably, El Salvador has garnered global attention for its bold cryptocurrency strategy, exemplifying the potential of Bitcoin as an alternative national asset.

In 2021, President Nayib Bukele adopted Bitcoin as legal tender, making El Salvador the first country to do so. Despite early losses including a 60% dip in 2022 recent rallies have turned the tide. With Bitcoin prices exceeding $84,000, the country’s 5,942-Bitcoin reserve has gained 90% in unrealized profits, adding $25 million in value within 24 hours. This success stems from diversifying national assets, reducing reliance on the U.S. dollar, and leveraging geothermal energy for Bitcoin mining. Despite criticism from organizations like the IMF, El Salvador continues to push forward, even issuing Bitcoin-backed bonds to fund ‘Bitcoin City’, a tax-free hub for crypto businesses.

In South Korea, the debate over crypto taxation reveals a similar struggle. As cryptocurrency emerges as a key asset class, South Korea faces the task of balancing innovation with regulatory clarity. Much like El Salvador’s initiatives, institutional support will be vital for unlocking cryptocurrency’s potential in South Korea.

이동훈 생글기자(Seoul Scholars International 11학년)