El Salvador, the first country to embrace Bitcoin as legal tender in 2021, is reaping substantial profits from its bold move. According to NayibTracker data, the country's Bitcoin holdings have surged to a value of $2.05 billion, generating an impressive profit of $83.18 million, representing a remarkable unrealized gain of 68.25%.
The Bitcoin holdings of El Salvador
President Nayib Bukele, recently re-elected in February, attributes El Salvador's Bitcoin-related income to various government initiatives. These include revenue from a citizenship program, services facilitating the conversion of Bitcoin to dollars for local businesses, mining activities, and other government services.
El Salvador's innovative approach extends to the introduction of an investment citizenship program in December, offering residency and citizenship in exchange for a $1 million investment in Bitcoin or USDT. Additionally, the approval of the $1 billion Bitcoin volcano bond in December 2023, expected to be issued in early 2024, highlights the country's commitment to leveraging Bitcoin for economic growth.
Renowned venture capitalist Tim Draper is bullish on El Salvador's Bitcoin strategy, foreseeing a transformative impact on the country's fortunes. Draper believes that within the next 30 to 40 years, El Salvador could evolve from one of the poorest and most crime-ridden nations into one of the wealthiest and most innovative. He attributes this transformation to the country's embrace of Bitcoin.
Draper predicts that if Bitcoin reaches $100,000, El Salvador could repay its debt to the International Monetary Fund (IMF) and become self-sufficient without IMF assistance. His optimistic outlook extends to Bitcoin's potential to revolutionize global financial systems, envisioning a future where traditional currencies are replaced by cryptocurrencies like Bitcoin.
The Vice President of El Salvador stressed that not only will El Salvador’s Bitcoin laws be upheld, but that cryptocurrencies also “enjoy the greatest credibility in the world.”
JinseFinanceEl Salvador legislates expedited citizenship for Bitcoin donors, further integrating cryptocurrency in governance.
KikyoEl Salvador made history in 2021 when it tapped Bitcoin as a national currency.
BeincryptoEl Salvador’s congress approved a digital securities law that would allow the nation to raise funds through the world’s first sovereign blockchain bond.
OthersProminent cryptocurrency and tech investor Tim Draper believes that the retail purchasing power of women, combined with the growing acceptance of bitcoin in stores, could push bitcoin to new highs above $250,000.
CointelegraphFamed crypto and tech investor Tim Draper believes the retail purchasing power of women, paired with Bitcoin acceptance at merchant stores, could send the asset to new highs above $250K.
CointelegraphEl Salvador's national bitcoin wallet continues to face major issues a week after its official launch.
CointelegraphOn Sept. 7, El Salvador became the first country to adopt BTC as legal tender, drawing both praise and criticism from the global community.
CointelegraphThis latest purchase brings El Salvador's Bitcoin reserves to about 1,120 BTC.
Cointelegraph"Policy unpredictability" and "adoption of bitcoin as legal tender" were part of the reason for Fitch's downgrade of El Salvador.
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