Salvadoran President Nayib Bukele reiterated his country's determination to bet on Bitcoin, announcing that El Salvador will continue its acquisitions at the rate of one BTC per day until the cryptocurrency “becomes unaffordable with fiat currencies”. The move reflects El Salvador’s unwavering belief in the long-term potential of Bitcoin.
El Salvador is banking on Bitcoin for its economic future
In September 2021, El Salvador made history by becoming the first country to recognize Bitcoin as legal tender, alongside the US dollar. Since then, the government has redoubled its efforts to integrate BTC into the national economic fabric, ignoring the reservations expressed by the IMF.
Launched in November 2022, the “ 1 Bitcoin per day » embodies El Salvador's desire to build up BTC reserves over the long term. Bitcoins acquired daily are stored in the same wallet recently used to secure a substantial portion of the country's BTC holdings.
In the interest of security, the Salvadoran government recently transferred a significant portion of its Bitcoin holdings to a cold wallet, keeping them in a physical vault within the national territory.
A profitable strategy despite still timid adoption
Thanks to this regular purchasing strategy, El Salvador has managed to take advantage of the recent rise in the price of Bitcoin. With 5,748 BTC held, representing more than $360 million, the country is currently recording a capital gain of $57 million.
Although El Salvador's BTC reserves remain modest compared to those of other governments or companies, such as MicroStrategy, the country is betting on Bitcoin as an asset that will increase in value and use in the future.
The recent launch of a blockchain explorer by the National Bitcoin Office (ONBTC) also demonstrates El Salvador's desire for transparency regarding its BTC transactions.
El Salvador's unwavering commitment to Bitcoin, demonstrated through its daily purchases and ambitious goal, reflects the country's confidence in the crypto's potential. Despite still limited adoption among the population, the government persists in its strategy, convinced that Bitcoin will be a vector of economic growth for the country.
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