KEY FACT: El Salvador is celebrating the third anniversary of its adoption of Bitcoin as legal tender. The country is reportedly counting substantial profits, around $31 million, from its Bitcoin investments, with the average purchase price of $43,877 per $BTC now valued at around $54,000. While El Salvador remains a trailblazer in state-level Bitcoin adoption, only the Central African Republic has followed suit so far.
Image Source: Crypto Town Hall
El Salvador Celebrates 3 Years of Bitcoin Adoption with $31M Profit
El Salvador, the smallest but most densely populated country in Central America is celebrating its Bitcoin anniversary. El Salvador made headlines on September 7, 2021, as the first country to adopt the cryptocurrency officially. It's been three years since the adoption of Bitcoin as legal tender and it marks a significant milestone in the country’s financial strategy.
In 2021 When President Nayib Bukele announced the bold move, many observers expressed doubt, particularly after the bear market in 2022 when Bitcoin's value plummeted. However, the country at its third Bitcoin holding anniversary is reportedly counting substantial profits, around $31 million, from its Bitcoin investments, with the average purchase price of $43,877 per $BTC now valued at around $54,000.
The country’s wallet is currently sitting on over $31 million worth of profit, according to the Nayib Bukele Portfolio Tracker website.
According to Alex Momot, CEO of Peanut Trade, President Nayib Bukele’s bold move to adopt Bitcoin has proven to be a financially beneficial adventure despite initial criticism. He said:
“El Salvador’s experiment with Bitcoin can be seen as a success. The country acted as a pioneer, taking risks and trying something radically new. While it’s too early to declare whether all aspects of the reform were successful, it’s clear that El Salvador has reaped some benefits.”
At the time of this report, El Salvador's Bitcoin reserves which totals 5,865 BTC, are worth over $318 million. To reach this milestone, the country has been dollar-cost-averaging into Bitcoin since 2021, buying 1 Bitcoin daily as part of its adoption plans.
“This financial gain further strengthens Bukele’s position, as the initiative now appears to be yielding tangible benefits, adding another layer of validation to his bold cryptocurrency experiment.”
El Salvador currently holds a total of 5,865 Bitcoin worth over $318 million, according to the country’s treasury website.
El Salvador BTC holdings. Source: Nayibtracker
One of the major reasons that inspired El Salvador's adoption of Bitcoin was financial inclusion for the underbanked population. To achieve its aim, El Salvador created the Chivo wallet, which was designed to give citizens easy access to Bitcoin and, in the long term, create a cashless society.
Harshit Gangwar, the head of marketing and investor relations at Transak hinted that though El Salvador was pressured by the International Monetary Fund (IMF) to reverse its 2021 decision, they have become a trailblazer for this novel improvement in the financial sector at the State level. The IMF had raised concerns over economic volatility.
“In hindsight, El Salvador was a trailblazer for normalizing Bitcoin as both an everyday currency and as a national investment, and the subsequent institutional adoption in other global regions has vindicated that decision. If El Salvador had left it until today to make Bitcoin legal tender, it’s fair to say there would be much less pushback.”
President Bukele's administration has been aggressive in pushing this Bitcoin agenda. The government has remained steadfast, even during Bitcoin’s downturns, arguing that the cryptocurrency’s long-term potential outweighs short-term market instability.
Here they are at Three Years! President Bukele’s administration remains optimistic, suggesting that this is only the beginning of El Salvador’s transformation into a global crypto hub.
many countries of the world are keenly studying to emulate El Salvador's example for their economies. It is a popular opinion that El Salvador will possibly set Bitcoin for improved adoption at the global space.
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