El Salvador's Bitcoin gains top $300M

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El Salvador's Bitcoin gains top $300M - President

crypto :: 2024-12-09 :: source - cointelegraph

By Ezra Reguerra

Salvadoran President Nayib Bukele highlighted the country’s unrealized gains from its Bitcoin investments on social media after the cryptocurrency surpassed $100,000 for the first time.

On Dec. 5, Bitcoin BTC $98,560 reached $100,000 for the first time, sparking celebrations within the crypto community. That same day, Autism Capital, a crypto-focused account on X, asked Bukele to share El Salvador’s Bitcoin portfolio to “dunk on the haters.” Bukele responded by posting the country’s BTC holdings on X.

Bukele’s latest update shows the country has spent nearly $270 million on Bitcoin since its initial adoption of the cryptocurrency. The portfolio shows no Bitcoin has been sold, and unrealized gains now exceed $333 million.

El Salvador’s Bitcoin journey

El Salvador was the first country to adopt Bitcoin as a legal tender. On Sept. 7, 2021, the country’s Bitcoin Law came into effect, officially making BTC a currency legally recognized for financial exchanges within El Salvador. On Sept. 6, the government also purchased its first 200 BTC.

Since then, El Salvador has continued to acquire Bitcoin. On Nov. 17, 2022, Bukele announced a dollar-cost averaging (DCA) strategy, committing to buy one Bitcoin daily.

Nayib Tracker, a platform dedicated to tracking the country’s Bitcoin investments, reports that El Salvador holds 6,180 BTC. The tracker estimates the average purchase price at $44,739.88 per Bitcoin, meaning the country is up 122% based on current market prices.

Besides BTC profit, El Salvador has reported other benefits since adopting Bitcoin. The country’s decision to adopt Bitcoin also boosted tourism.

IMF calls on El Salvador to ditch Bitcoin

Despite the country’s reported success, the International Monetary Fund (IMF) has consistently urged El Salvador to reconsider its Bitcoin policies.

On Jan. 25, 2022, the IMF asked El Salvador to stop recognizing BTC as legal tender, citing risks to financial stability despite acknowledging the potential for increased financial inclusion.

On Oct. 3, the IMF renewed its call to El Salvador to scale back its Bitcoin policies. The IMF’s communications director, Julie Kozack, recommended narrowing the scope of the country’s Bitcoin Law and limiting the public sector’s exposure to Bitcoin.

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