El Salvador continues to deepen its engagement with the Bitcoin (BTC) market. The Latin American nation has been buying one Bitcoin every day since March, striving to continue this practice until it becomes unaffordable with fiat currencies. This plan has pushed the nation’s Bitcoin holdings to a substantial total of nearly 6,000 BTC.
El Salvador Doubles Down On Bitcoin Dream
According to data from blockchain tracking platform Arkham Intelligence, the Salvadoran government has been purchasing one full Bitcoin every day since March 16, 2024. As of this writing, the Central American nation holds 5,852 Bitcoin, valued at $377 million, at Bitcoin’s current price of $64,508.
El Salvador’s pioneering stance on Bitcoin started in September 2021 when it became the first country in the world to make the preeminent cryptocurrency legal tender. The crypto experiment grabbed headlines and helped the country supercharge niche crypto tourism, but simultaneously spooked the International Monetary Fund (IMF) and was criticized by some Salvadorans.
Despite facing harsh criticism, President Nayib Bukele’s commitment to his bold Bitcoin plan remains steadfast as the ongoing acquisition has added 162 BTC so far. Popular crypto analyst EmberCN noted that the Salvadoran government is currently sitting on unrealized profits of over $93.45 million, with an average purchase price of approximately $44,835 per BTC — suggesting Bukele’s strategy is certainly paying off.
El Salvador’s ‘Bitcoin Piggy Bank’
El Salvador’s crypto-touting millennial Presidente recently disclosed that his government had transferred a significant chunk of its Bitcoin treasury to an offline device stored in a physical vault within the nation’s territory.
This move to secure the crypto assets in a “Bitcoin piggy bank” marks a major step in Bukele’s financial vision, protecting the coins from potential cyber threats and reflecting strong faith in the cryptocurrency’s future.
Besides the direct BTC acquisitions, El Salvador has showcased its innovative approach to harnessing cryptocurrency for economic development by investing in Bitcoin mining using the nation’s ample geothermal energy from volcanoes. El Salvador has mined as much as 474 Bitcoin (worth $29 million) since 2021.
In June, Bukele was sworn in for another five-year presidential term after securing a landslide victory in February, suggesting continued Bitcoin adoption in El Salvador.
As the country continues its Bitcoin acquisition program and upgrades its crypto infrastructure, it sets a precedent for other countries to follow suit, possibly revamping the international financial landscape.
