El Salvador’s government has reaped substantial gains from its Bitcoin adoption, with its total Bitcoin holdings now valued at over $164 million. In a triumphant turn, Bitcoin has taken El Salvador from a bearish market slump to a buzzing financial victory. As the pioneer country to approve Bitcoin as legal tender, El Salvador’s crypto stash has expanded rapidly, with profits already exceeding an impressive $50 million.
The country’s President, Nayib Bukele initiated a plan to buy 1 BTC daily, and to date, the government possesses about 2,380 BTC, which amounted to $158.5 million. With Bitcoin hitting an all-time high on March 5, the value of these holdings soared to $164.7million. This is impressive, as it represents an outstanding 53% more than El Salvador’s initial acquisition costs, with each BTC bought at an average price of $44,300.
President Bukele has been vocal about mainstream media’s coverage of the country’s fiscal policy, particularly when it comes to cryptocurrency. He challenged reports of losses when Bitcoin’s market price was low, remarking that the tables have turned now that the price has rocketed. Despite the significant profitability, Bukele confirms his government has no intentions of selling, highlighting their firm belief in Bitcoin’s inherent value.
Interestingly, El Salvador stands alone in its bold move to adopt a “Bitcoin standard”. While there have been whispers of other countries, particularly in South America, eyeing a similar path, no formal decisions have emerged. However, experts like Samson Mow of company Jan3, predict that more nations are on the horizon joining the Bitcoin bandwagon. He anticipates countries, corporations, and institutional investors to be among the future Bitcoin purchasers, buoyed by the cryptocurrency’s rising value.