El Salvador, the pioneer nation to make Bitcoin a legal tender, continues to accumulate Bitcoin daily, undeterred by market fluctuations. For 665 consecutive days, the nation has been buying 1 Bitcoin per day, reflecting its long-term commitment to the cryptocurrency.
According to on-chain analysis platform Spot On Chain, El Salvador now holds a total of 5,871 Bitcoins, with an estimated value of $341 million. The average acquisition price of the nation’s Bitcoin is reported to be around $43,888 per BTC, with around 3,046 BTC bought at this rate.
Despite the volatility of Bitcoin, which has seen its price fluctuate between lows of $53,000 to a recent recovery to near $58,200 after the sell-off, El Salvador remains undeterred. This price plunge followed the cryptocurrency’s halving event in April earlier this year, where miners’ block rewards were reduced by half, reducing the supply even further.
The country’s commitment to bitcoin extends beyond simply accumulating the cryptocurrency. El Salvador’s official bitcoin website shows regular updates about the country’s rising BTC. This bitcoin strategy is part of a broader economic approach that has gained a lot of attention globally.
Economic transformation and bitcoin as legal tender
El Salvador, which covers 21,041 square kilometers (8,124 square miles) and is Central America’s smallest country, is a developing economy undergoing transformation. Historically dependent on agriculture, the country is moving towards manufacturing and services. The US dollar has been its official currency since 2001 after it was adopted to stabilize the economy.
In 2021, El Salvador made headlines by becoming the first country to declare bitcoin a legal tender. The move was initiated by President Nayib Bukele, who saw the cryptocurrency as a tool to modernize El Salvador’s financial system and attract foreign investment. The country’s adoption of bitcoin is seen as a cornerstone of Bukele’s strategy to create a more inclusive economy, particularly by providing financial access to the unbanked.
New Incentives for Foreign Investors
Taking another step to strengthen its economy and attract international capital, the government of El Salvador passed legislation in December 2023 offering expedited citizenship to foreigners who contribute bitcoin to the country’s social and economic programs. This new policy is designed to promote foreign investment and stimulate economic growth, while also solidifying the country’s role as a global bitcoin hub.
By incentivizing bitcoin contributions through a path to citizenship, El Salvador is establishing itself as a leader in the adoption of cryptocurrency-based governance and investment strategies. The initiative is part of a broader effort to use innovative financial tools to promote sustainable development in a country that is eager to modernize and attract foreign capital.
While the world is watching El Salvador’s pioneering efforts with Bitcoin, the nation is breaking new ground in how cryptocurrencies can be integrated into national policy and development strategies.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before investing in any cryptocurrency.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your research before investing in any cryptocurrency.
