In the global financial landscape, few nations dare to adopt a strategy as bold as that of El Salvador. Under the leadership of its President Nayib Bukele, this Central American country is establishing itself as a forerunner in the adoption of cryptos. Thanks to reaching the symbolic mark of 6,000 BTC accumulated, El Salvador is not only strengthening its commitment to bitcoin, but also aims to transform this crypto into a pillar of its economic and diplomatic strategy. This unprecedented bet provokes as much admiration from supporters of decentralized finance as critics from international institutions, who warn of the risks associated with such exposure.
Recent acquisitions: El Salvador reaches 6,000 BTC
On December 29, El Salvador reached a new milestone with the addition of bitcoin to its national wallet. This acquisition brings the country's reserves to 6,000.77 BTC, an estimated value of $569.3 million at current prices. Since 2021, when the country pioneered the adoption of bitcoin as legal tender, the government has pursued a policy of regular purchases, thereby consolidating its unique position on the global crypto scene. Thus, according to the National Bitcoin Office, these purchases were made at an average cost of $45,450 per unit, which generates a notable return of 108.02%.
This new investment comes in a context where President Nayib Bukele's economic choices continue to divide international opinion. The International Monetary Fund (IMF) has notably renewed its warnings, and is encouraging the country to reduce its exposure to cryptos. Despite these criticisms, Stacy Herbert, director of the National Bitcoin Office, asserted in a post on X (formerly Twitter) on December 19, 2024 that bitcoin “remains our main strategy”. This statement reflects El Salvador's determination to maintain its trajectory, despite doubts expressed by global financial institutions.
A bold strategy: between national support and international criticism
El Salvador now asserts itself as a full member of an exclusive circle of nations, alongside the United States, China, the United Kingdom, Ukraine and Bhutan, which hold more than 6,000 BTC. This positioning reflects an ambitious strategy which aims to place the country at the heart of the global cryptosphere with a view to attracting foreign investment. With this in mind, the government Bukele has multiplied initiatives, notably by establishing strategic partnerships. Among them, the agreement with Bitget aims to strengthen the local crypto infrastructure and promote broader adoption of these assets among the population.
However, this policy continues to provoke strong criticism on the international scene. The $1.4 billion deal signed with the International Monetary Fund (IMF) remains under tension as the IMF demands that the country limit its exposure to bitcoin. At the same time, questions are increasing regarding the management of the “Chivo Wallet”, an application developed by the State to facilitate bitcoin transactions. According to the latest statements, this solution could be replaced by private alternatives, which raises doubts about the continuity of public efforts to regulate the use of cryptos. These challenges illustrate the complexity of such an initiative, both a source of economic opportunities and political controversies.
The strategy adopted by El Salvador calls into question its long-term economic viability and the potential consequences for its financial sovereignty. Thanks to its investments in bitcoin despite warnings from international organizations like the IMF, the country is establishing itself as a unique laboratory for the national integration of cryptos. This choice, bold but controversial, could both strengthen the economic attractiveness of El Salvador and accentuate its financial and diplomatic fragilities.
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