El Salvador, the first country to make Bitcoin legal tender and adopt a Bitcoin investment strategy for its national treasury, has now amassed over $400 million worth of the cryptocurrency. This significant milestone comes after President Nayib Bukele spearheaded the effort to pass a law making Bitcoin legal tender in 2021.
Since the legalization of Bitcoin, El Salvador has been actively purchasing the cryptocurrency through daily and periodic acquisitions, as announced by President Bukele. In addition to direct purchases, the country has implemented various strategies to generate Bitcoin, including a passport program, converting BTC to dollars for businesses, and engaging in Bitcoin mining. These initiatives showcase El Salvador’s dedication to establishing a circular Bitcoin economy.
President Bukele recently disclosed the government’s Bitcoin address to the public for the first time, revealing that the cryptocurrency is stored in a state-run cold storage vault resembling a “piggy bank” style. He also declared the intention to acquire 1 Bitcoin daily until it becomes unaffordable with fiat currencies.
To date, El Salvador has acquired over 5,700 BTC at an average price of approximately $42,700. With Bitcoin’s recent surge surpassing $70,000, the country’s holdings have appreciated by nearly $80 million. President Bukele believes that Bitcoin will play a crucial role in boosting El Salvador’s economy through avenues such as tourism, remittances, and foreign investment. Additionally, the fixed supply of Bitcoin positions it to appreciate against the U.S. dollar over time.
Despite facing initial controversy, President Bukele’s decision to embrace Bitcoin now appears prescient as the investment pays off with the cryptocurrency’s soaring value. He has consistently championed Bitcoin, emphasizing its potential even when critics doubted its viability. If global adoption of Bitcoin continues to accelerate, El Salvador’s early and substantial investment in the cryptocurrency could position it as the world’s first Bitcoin-rich nation.
The remarkable progress made by El Salvador in accumulating Bitcoin highlights the country’s innovative approach to financial strategies and its commitment to embracing emerging technologies. As the cryptocurrency landscape evolves, El Salvador’s pioneering stance on Bitcoin sets a precedent for other nations to consider integrating digital assets into their economic frameworks.