Salvadoran President Nayib Bukele recently took to social media to highlight the country’s substantial unrealized profits from its Bitcoin holdings after the cryptocurrency hit an unprecedented milestone of $100,000.
On December 5, Bitcoin broke past the $100,000 mark for the first time, setting off celebrations across the global crypto community. That day, a popular crypto-focused account on X (formerly Twitter), Autism Capital, called on Bukele to reveal El Salvador’s Bitcoin portfolio as a rebuttal to critics. Bukele obliged, sharing details of the nation’s BTC investments.
The data revealed El Salvador has invested approximately $270 million in Bitcoin since adopting it as legal tender. The country has not sold any of its holdings, and its unrealized profits have now surpassed $333 million.
El Salvador’s Bitcoin Strategy
El Salvador made history as the first nation to embrace Bitcoin as legal tender, implementing the groundbreaking Bitcoin Law on September 7, 2021. A day prior, the government initiated its Bitcoin journey with the purchase of 200 BTC.
Since then, the country has steadily expanded its holdings. In November 2022, Bukele announced a dollar-cost averaging (DCA) approach, committing to purchasing one Bitcoin daily.
According to Nayib Tracker, a platform that monitors El Salvador’s Bitcoin activity, the country now owns 6,180 BTC. The average acquisition price is estimated at $44,739.88 per Bitcoin, translating to a remarkable 122% gain at current prices.
Beyond profits, Bitcoin adoption has positively impacted El Salvador’s economy, with tourism seeing a notable uptick since the cryptocurrency became legal tender.
Pushback from the IMF
Despite these achievements, the International Monetary Fund (IMF) has repeatedly urged El Salvador to reassess its Bitcoin policies.
In January 2022, the IMF advised the country to abandon Bitcoin as legal tender, warning of potential risks to financial stability, despite acknowledging its role in enhancing financial inclusion. Later that year, the IMF reiterated its concerns, urging El Salvador to reduce its exposure to Bitcoin and scale back related legislation.
While criticisms persist, Bukele’s administration remains steadfast in its Bitcoin strategy, which has positioned El Salvador as a trailblazer in cryptocurrency adoption.
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