El Salvador, the first country to make Bitcoin legal tender, and to adopt a Bitcoin investment strategy for its national treasury, has now accumulated over $400 million worth of Bitcoin.
President Nayib Bukele led the effort to pass a law making Bitcoin legal tender in 2021. Since then, the country has purchased Bitcoin through daily and periodic purchases announced by Bukele on X.
In addition to direct purchases, El Salvador also generates Bitcoin through a passport program, converts BTC to dollars for businesses, and mines Bitcoin, all of which demonstrates the country’s commitment to building a circular Bitcoin economy.
Bukele recently revealed the government’s Bitcoin address for the first time to the public. Bukele has stated that Bitcoin is held in a state-run “piggy bank” style cold storage vault. He also mentioned that they will be buying 1 Bitcoin every day until “Bitcoin becomes unaffordable with fiat currencies.”
El Salvador has purchased over 5,700 BTC to date at an average price of around $42,700. With Bitcoin recently surging past $70,000, the country’s holdings are up nearly $80 million.
The president believes Bitcoin will help boost El Salvador’s economy through tourism, remittances, and foreign investment. Bitcoin’s fixed supply also stands to appreciate against the U.S. dollar over time.
Bukele has frequently touted Bitcoin on X, stating,” When Bitcoin’s market price was low, [critics] wrote literally thousands of articles about our supposed losses.” Now, with Bitcoin soaring, the investment is paying off.
While initially controversial, Bukele’s Bitcoin play now looks prescient. If adoption continues accelerating globally, El Salvador’s massive early investment could someday make it the world’s first Bitcoin-rich nation.