El Salvador continues to accumulate Bitcoin

Salvadoran President Nayib Bukele has reaffirmed his country’s commitment to Bitcoin by announcing that El Salvador will continue acquiring one Bitcoin per day until it becomes “unaffordable with fiat currencies.” This decision underscores the nation’s strong belief in Bitcoin’s long-term potential.

In September 2021, El Salvador became the first country to recognize Bitcoin as legal tender, alongside the US dollar. The government has since been proactive in integrating Bitcoin into the national economy, despite concerns from the International Monetary Fund (IMF).

Launched in November 2022, the “1 Bitcoin per Day” program aims to build substantial BTC reserves over time. These daily acquisitions are stored in a secure wallet, with recent measures transferring a significant portion of the holdings to a cold wallet kept in a physical vault within the country.

El Salvador has benefited from Bitcoin’s recent price increases, holding 5,748 BTC worth over $360 million, with a capital gain of $57 million. While these reserves are smaller than those of major entities like MicroStrategy, the country views Bitcoin as an asset poised to increase in value and utility.

The National Bitcoin Office (ONBTC) has launched a blockchain explorer to enhance transparency of the country’s BTC transactions, reinforcing El Salvador’s commitment to Bitcoin. Despite limited adoption among the population, the government remains steadfast, believing Bitcoin will drive future economic growth.

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