El Salvador is the first nation to have adopted a Bitcoin strategy to invest in its national Treasury and make Bitcoin legal tender. It has accumulated more than $400 million of Bitcoin.
Nayib Bukele led efforts to get a Bitcoin law passed in 2021. Bukele announced on X that the country had purchased Bitcoins through periodic and daily purchases.
El Salvador, in addition to making direct Bitcoin purchases, also creates Bitcoins through its passport program, exchanges BTC for dollars to businesses and mines Bitcoins, all of these actions demonstrating the commitment of El Salvador to a Bitcoin circular economy.
Bukele revealed to the public for the very first time the Bitcoin address of the government. Bukele recently revealed the government’s Bitcoin address for the first time to public. stated Bitcoins are held by a government-run institution “piggy bank” Cold storage vaults are available in different styles. He is also mentioned The plan is to buy one Bitcoin every day up until “Bitcoin becomes unaffordable with fiat currencies.”
El Salvador bought over 5,700 BTC in total at an average cost of approximately $42,700. Bitcoin’s recent surge past $70,00 has seen the country’s Bitcoin holdings increase by nearly $80 Million.
Bitcoin, according to El Salvador’s president, will boost the country’s economic growth through foreign investment, tourism and remittances. Bitcoin’s limited supply will also appreciate in comparison to the U.S. currency over time.
Bukele is a frequent proponent of Bitcoin, stating that it’s the best currency on X.” When Bitcoin’s market price was low, [critics] wrote literally thousands of articles about our supposed losses.” Bitcoin is soaring now, and the investment has paid off.
Bukele’s Bitcoin strategy, which was initially controversial now seems prescient. El Salvador could become the first Bitcoin-rich country in the future if adoption rates continue to increase globally.
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Source: bitcoinmagazine.com