With each new Bitcoin purchase, the country’s financial future becomes increasingly tied to the fortunes of an unpredictable crypto market.
El Salvador, the first nation to adopt Bitcoin as legal tender, has continued to aggressively accumulate the cryptocurrency.
According to recent data from blockchain analytics platform Arkham Intelligence, the Salvadoran government has been steadily adding to its Bitcoin reserves, purchasing one Bitcoin
every day since March 16.
Bukele’s Bitcoin vision
The ongoing acquisition has added 162 Bitcoin to the country’s holdings, bringing its total to 5,851 BTC valued at roughly $356.4 million at current market prices.
President Nayib Bukele, the architect of El Salvador’s Bitcoin adoption, has consistently advocated for cryptocurrency as a means to economic independence and innovation. His strategy for the government to make daily purchases of 1 BTC highlights his long-term commitment to integrating Bitcoin into the nation’s financial framework.
Bukele’s government began the series of purchases by transferring 5,689 BTC into a cold storage wallet on March 16, 2024, a move Bukele referred to as creating the country’s first “Bitcoin piggy bank.”
The purchases have received both admiration and concern within the international community. Supporters hail Bukele’s bold approach as a visionary step toward financial sovereignty, particularly in a country historically plagued by economic instability.
Related: El Salvador launches Bitcoin certifications for civil servants
According to crypto analyst EmberCN, the Salvadoran government’s current floating profit of approximately $93.45 million, with an average purchase price of around $44,835 per Bitcoin, seems to validate Bukele’s strategy in the short term.
Transparency and International Implications
In an effort to address concerns about transparency, the government has implemented a mempool space, enabling public auditing of its Bitcoin holdings. The initiative is designed to foster trust and demonstrate accountability in the handling of public funds tied to cryptocurrency investments.
In addition to its direct purchases, El Salvador has also invested in Bitcoin mining using the country’s abundant volcanic geothermal energy. Since 2021, the nation has mined 474 Bitcoin, worth around $29 million.
This environmentally friendly approach to Bitcoin mining aligns with Bukele’s vision of integrating technology and natural resources, yet it remains a relatively small part of the country’s broader Bitcoin strategy.
Bukele was sworn in for another five-year presidential term after a landslide election victory in February.
source link : https://cointelegraph.com/news/el-salvador-daily-bitcoin-purchases-bukele-strategy
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