El Salvador’s Bitcoin Holdings Surpass 6,000 BTC, Valued at $569 Million
El Salvador has achieved a significant milestone, becoming the sixth country globally to hold more than 6,000 Bitcoin (BTC). This development highlights the Central American nation’s steadfast commitment to cryptocurrency as a strategic treasury asset under the leadership of President Nayib Bukele.
A Growing Bitcoin Portfolio
As of December 29, El Salvador’s Bitcoin reserves reached 6,000.77 BTC, valued at approximately $569.3 million, according to data from the country’s National Bitcoin Office. This marks an impressive 108.02% gain on its Bitcoin investments, acquired at an average price of $45,450 per BTC, as per the Nayib Bukele portfolio tracker.
El Salvador made history on September 6, 2021, as the first country to adopt Bitcoin as legal tender, purchasing its initial 200 BTC. Since then, the Bukele administration has steadily added to its Bitcoin stash, often acquiring one Bitcoin per day.
El Salvador Among Bitcoin-Holding Nation-States
According to BitBo’s Bitcoin Treasuries data, El Salvador now ranks sixth among nation-states with significant Bitcoin holdings, trailing only the United States, China, the United Kingdom, Ukraine, and Bhutan. Despite requests from the International Monetary Fund (IMF) to scale back its Bitcoin activity, the government has continued its aggressive purchasing strategy. For example, El Salvador acquired $1 million worth of Bitcoin shortly after securing a $1.4 billion deal with the IMF.
Future Plans and Challenges
Stacy Herbert, Director of El Salvador’s National Bitcoin Office, recently hinted that the country may accelerate its Bitcoin purchases. Speaking to Cointelegraph, a Bitcoin Office spokesperson reiterated that Bitcoin remains the government’s primary economic strategy, dismissing any plans to sell its holdings.
However, adjustments are underway in the country’s Bitcoin ecosystem. The government’s Chivo wallet, initially introduced to promote Bitcoin adoption, will be either sold or phased out. Herbert anticipates private-sector Bitcoin wallets will fill the void and continue serving the nation’s crypto users.
IMF Approval Pending
El Salvador’s $1.4 billion IMF deal, representing four years of tense negotiations, awaits final approval. The IMF has expressed concerns over President Bukele’s Bitcoin-centric policies, arguing they pose financial risks to the nation. Despite these reservations, El Salvador’s unwavering focus on Bitcoin underscores its ambition to cement its position as a leader in cryptocurrency adoption.
El Salvador’s strategy reflects a bold experiment in integrating Bitcoin into national policy, paving the way for potential long-term benefits while navigating challenges in the global financial landscape.
