El Salvador now ranks among the few countries with over 6,000 Bitcoin (BTC). With the addition of 1 BTC on December 29, the country’s Bitcoin reserves now stand at 6,000.77 BTC, valued at about $569.3 million. With this feat, El Salvador joins the United States, China, the United Kingdom, Ukraine, and Bhutan as large Bitcoin holders.
The nation’s Bitcoin journey began in September 2021, when it became the first government to recognize Bitcoin as legal cash. President Nayib Bukele of El Salvador has consistently invested in Bitcoin, buying the cryptocurrency at an average price of $45,450 per unit. To date, the country’s Bitcoin holdings have increased by a remarkable 108.02%.
El Salvador’s commitment to Bitcoin remains unwavering, despite external challenges. The country just reached a $1.4 billion accord with the International Monetary Fund (IMF), following years of negotiations. However, this accord has not discouraged the government’s cryptocurrency approach. Just days following the transaction, El Salvador purchased $1 million in Bitcoin, displaying its steadfast faith in the cryptocurrency.
While the government intends to phase down its Chivo wallet, a state-sponsored cryptocurrency wallet, private-sector wallets are expected to continue facilitating Bitcoin transactions for citizens. The shift demonstrates El Salvador’s versatility in its strategy to encourage cryptocurrency usage.
Despite criticism from the IMF, which is concerned about the threats Bitcoin poses to the country’s financial stability, El Salvador is sticking to its goal. The government sees Bitcoin as a cornerstone of its financial strategy and is ready to confront the challenges that come with this new approach.
By hitting this new milestone, El Salvador has cemented its position as a global leader in cryptocurrency adoption, paving the road for a Bitcoin-centered economic future.
