Three years ago, on September 7, 2021, El Salvador accepted Bitcoin as legal cash.
El Salvador has been purchasing one Bitcoin every day since 2021.
It has been three years since El Salvador officially recognized Bitcoin as legal money, and now the nation is commemorating the occasion with a celebration.
Three years ago, on September 7, 2021, El Salvador became the first nation in the world to accept Bitcoin as legal cash. The goal was to encourage financial inclusion, make remittance payments more efficient, and attract financial innovators.
Banking on Bitcoin
According to analysts, President Nayib Bukele’s decision to accept Bitcoin makes the nation a historical pioneer in digital assets. El Salvador has been purchasing one Bitcoin every day since 2021 as part of its adoption ambitions, dollar-cost averaging into the cryptocurrency.
The Nayib Bukele Portfolio Tracker website indicates that the nation’s wallet now has approximately $31 million of profits in it. The average price per Bitcoin that El Salvador purchased was $43,877. At the time of writing, Bitcoin is trading at $54,442 as per data from CMC.
Analyst claims that, despite early criticism, the move was ultimately beneficial for El Salvador’s economy due to the $31 million profit it generated from Bitcoin. This financial gain gives Bukele even more support; it shows that his effort is paying off, which is a huge boost to his confidence in his bold cryptocurrency venture.
As of right now, El Salvador’s treasury website shows that the government has 5,865 Bitcoin, with a value of more than $318 million. After Bitcoin’s decline from its all-time high of $69,000 in November 2021 after the FTX exchange’s failure, President Nayib Bukele’s move came under heavy criticism. After Bitcoin dropped as low as $16,000 during the bear market, El Salvador’s Bitcoin holdings went into a steep decline.
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