El Salvador recently made headlines by purchasing 11 Bitcoins (BTC), amounting to over $1 million, right after a dip in the market. This bold move showcases the nation’s commitment to its Bitcoin strategy despite external pressures.
What set this purchase in motion? The National Bitcoin Office, appointed by President Nayib Bukele, confirmed that the Central American country had shifted its acquisition strategy. They increased their daily Bitcoin purchase from one to eleven, a significant leap that illustrates El Salvador’s determination to bolster its Bitcoin reserves.
In a tweet, the Bitcoin Office proudly announced, “We just transferred over a million dollars worth of Bitcoin to our Strategic Bitcoin Reserve.”
This latest acquisition brought El Salvador’s Bitcoin holdings to approximately 5,980.77 BTC, valued at around $581 million. The nation now enjoys an unrealized profit exceeding $307 million from its investments.
The backdrop of this substantial purchase is a considerable drop in Bitcoin’s value, which recently dipped below $96,000. This market volatility did not deter El Salvador’s ambitions.
Why does this matter? Just a day before this buying spree, El Salvador finalized a $1.4 billion loan deal with the International Monetary Fund (IMF). Interestingly, the terms included a stipulation for the nation to curtail its aggressive Bitcoin acquisition strategy. Yet, Stacy Herbert, the Director of the National Bitcoin Office, reassured supporters that the country would maintain its buying momentum, stating that they intend to buy Bitcoin at an accelerated pace and continue to implement Bitcoin-friendly policies.
Herbert tweeted about the ongoing developments: “Bitcoin remains legal tender. El Salvador will continue buying Bitcoin (at possibly an accelerated pace) for its Strategic Bitcoin Reserve. Bitcoin capital markets will continue to be built.”
El Salvador proudly became the first country to adopt Bitcoin as legal tender in 2021. However, it’s noteworthy to mention that despite this pioneering move, the everyday use and adoption of Bitcoin among Salvadorans has not skyrocketed, as many still prefer the U.S. dollar as their primary means of transaction.
As of now, Bitcoin is trading at approximately $97,618.09, marking a 3.33% decline over the past 24 hours, according to data from Benzinga Pro.
El Salvador’s ongoing commitment to Bitcoin, in the face of external pressures and market fluctuations, showcases its resolve to position itself as a leader in cryptocurrency adoption. With such bold strategies, the nation is betting on a future where Bitcoin plays a central role in its economy.
