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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Feb 29, 2024 08:25 UTC
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El Salvador Doubles Down on Bitcoin Holdings Despite Profit Opportunity
El Salvador is holding onto its Bitcoin, despite potential profit, emphasizing a long-term strategy.
The country sees Bitcoin donations through its citizenship program as a primary source for acquiring more.
El Salvador remains committed to cryptocurrency, with plans for Bitcoin bonds and a crypto hub.
In a bold move, President Nayib Bukele of El Salvador has declared that the country will not part ways with its Bitcoin holdings. The president emphasizes the principle that “1 BTC will equal 1 BTC at the end,” maintaining a resolute stance despite the potential for a profit exceeding 40% if the nation were to sell based on current market value.
Here’s everything you need to know.
Bitcoin Stance Made Clear
President Bukele took to his social media platform, X, to share insights into El Salvador’s significant Bitcoin reserves. This comes after the country gained international attention by adopting Bitcoin as legal tender alongside the US dollar in September 2021.
Reflecting on past uncertainties when Bitcoin’s value was less stable, Bukele acknowledged media misreporting on El Salvador’s BTC investments. He contrasts this with the present, noting the potential for profits of over 40% due to recent Bitcoin market growth.
Also Read: Crypto Regulations of El-Salvador: First Country to Use Bitcoin as Legal Tender
How They’re Sourcing Bitcoin
Bukele revealed that El Salvador’s primary source of Bitcoin is its citizenship program. In a notable move, the Salvadoran Congress approved a migration law granting expedited citizenship to foreigners making Bitcoin “donations” for government-driven initiatives.
President Bukele reiterated El Salvador’s steadfast commitment, stating, “We won’t sell; at the finality, 1 BTC = 1 BTC — true when the market price was low, and true now.” He addressed critics and media channels that had previously portrayed El Salvador’s Bitcoin adoption negatively, highlighting their present silence.
Future Plans Laid Out
El Salvador’s commitment to Bitcoin is evident with President Bukele’s 87% re-election victory. Plans include launching bond-backed Bitcoin in early 2024 and constructing Bitcoin City, a tax-free crypto hub.
Despite success, the IMF warns El Salvador about potential repercussions, urging adherence to traditional legal tender. President Bukele’s unwavering decision underscores the country’s determination in the cryptocurrency realm.
El Salvador’s innovative approach, particularly with Bitcoin City, continues to attract global attention. President Bukele’s strong stance on cryptocurrency positions the country as a pioneer in navigating the evolving landscape of digital assets.
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