Newsmogul
San Salvador, Dec. 8, 2024 – El Salvador’s President Nayib Bukele marked a historic moment in the cryptocurrency world by showcasing the country’s Bitcoin (BTC) portfolio after the cryptocurrency surpassed the $100,000 mark for the first time. With unrealized gains exceeding $333 million, the announcement reinforced the nation’s controversial yet pioneering adoption of Bitcoin as legal tender.
On Dec. 5, Bitcoin reached the $100,000 milestone, sparking celebrations across the crypto community. Responding to a social media request from the crypto account Autism Capital, Bukele revealed that El Salvador has invested nearly $270 million in Bitcoin without selling a single satoshi.
A Bold Bitcoin Journey
El Salvador became the first country to adopt Bitcoin as legal tender on Sept. 7, 2021, with the enactment of the Bitcoin Law. Since its initial purchase of 200 BTC on Sept. 6, 2021, the government has steadily expanded its holdings. As of today, the country owns 6,180 BTC, acquired at an average price of $44,739.88 per coin, according to Nayib Tracker, a platform dedicated to monitoring the nation’s Bitcoin investments.
The adoption of Bitcoin has brought significant benefits beyond financial gains. Tourism in El Salvador has reportedly surged since the cryptocurrency’s legalization, with President Bukele frequently highlighting the positive impact on the nation’s economy and global visibility.
IMF Pushback and Criticism
Despite the apparent success, the International Monetary Fund (IMF) has consistently criticized El Salvador’s Bitcoin policies. The IMF has warned of potential risks to financial stability and public debt. In January 2022 and again in October 2023, the IMF urged El Salvador to scale back its Bitcoin initiative, recommending the government limit public sector exposure and focus on traditional economic policies.
Moving Forward
President Bukele’s steadfast commitment to Bitcoin, including the implementation of a dollar-cost averaging strategy in 2022, has cemented El Salvador’s role as a trailblazer in the cryptocurrency space. With Bitcoin prices continuing to rise, El Salvador’s bold bet on digital currency seems to be paying off—at least for now.
