El Salvador Surpasses 5,800 Bitcoin in Daily Bitcoin Accumulation
BitVerge – El Salvador has once again made headlines in the crypto world by adding one Bitcoin per day to its national reserves for the past 665 days, regardless of market volatility. This strategy has brought the government’s total Bitcoin holdings to 5,871 BTC, currently valued at around $342 million.
President Nayib Bukele’s administration began this daily Bitcoin purchase initiative as part of its efforts to build a reserve of digital assets, while adopting Bitcoin as legal tender in the country. Of the 5,871 BTC, 3,046 were announced for purchase at an average price of $43,888 each. Despite the volatile nature of the crypto market, the government has remained committed to Bitcoin.
Bukele’s Bitcoin play began in September 2021, when El Salvador became the first country to adopt the cryptocurrency as legal tender. The move was aimed at promoting financial inclusion in a country where 70% of the population does not use traditional banking services, and reducing reliance on remittances.
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Long-Term Confidence in Bitcoin While Bitcoin adoption in the country has faced challenges, with a study by the University Institute for Public Opinion showing that 88% of Salvadorans have yet to use the cryptocurrency, Bukele remains steadfast in his stance. In a recent interview, he noted that Bitcoin has not achieved widespread adoption, but has benefited those who have chosen to adopt it.
El Salvador’s strategy of accumulating Bitcoin has also caught the attention of international institutions, particularly the International Monetary Fund, which has expressed concerns about the potential risks but approved an initial loan deal with the country in August 2023. As El Salvador continues to accumulate Bitcoin, it is betting on the long-term future of cryptocurrency as a key part of its economic strategy.
El Salvador’s bold strategy reflects its strong belief in the potential of cryptocurrencies, despite mixed adoption and international scrutiny.
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