El Salvador’s Bitcoin Holdings
In a bold move, El Salvador made headlines when it adopted Bitcoin as legal tender on September 7, 2021. Led by President Nayib Bukele, the country began buying Bitcoin (BTC) on September 6, 2021, purchasing 400 BTC at an average price of $46,811, totalling $18.724 million. This was just the beginning.
Over the past three years, El Salvador's Bitcoin reserves have grown significantly. In the first year alone, the country accumulated over 2,300 BTC. As of now, they hold 5,867 BTC at an average cost of $43,884 per Bitcoin. With Bitcoin prices currently above $55,000, El Salvador enjoys a profit of approximately $34.55 million, equating to a substantial 25.88% gain on their investment. This makes El Salvador the third-largest government Bitcoin holder globally, following the US and UK.
El Salvador Not Relenting
Despite the impressive profits, President Bukele has no intention of selling the country's Bitcoin. He views BTC holdings in a unique way, emphasizing a Bitcoin-to-Bitcoin value metric rather than its dollar value. This means 1 BTC is always considered equal to 1 BTC in El Salvador's eyes, irrespective of market fluctuations.
El Salvador's commitment to Bitcoin extends beyond their holdings. The nation continues to operate with both the US dollar and Bitcoin as legal tenders, offering residents the freedom to choose their preferred currency. This reflects a broader strategy to integrate cryptocurrency into the economy without imposing it forcefully.
To enhance transparency and engagement, El Salvador launched a BTC monitoring website. This platform allows citizens and interested parties to track various Bitcoin metrics, including El Salvador's BTC reserves. The country's dedication to Bitcoin showcases a pioneering approach in the cryptocurrency markets and highlights ongoing trends in decentralized finance (DeFi).
