In a remarkable turn of events, El Salvador has witnessed an $84 million surge in the unrealized profit from its Bitcoin holdings, as announced by President Nayib Bukele. The country, which embarked on its Bitcoin acquisition journey in September 2021, now boasts a Bitcoin treasury exceeding $206 million. This achievement comes after Bitcoin’s value soared by 250% over the past year, resulting in a 69% gain on the nation’s initial investment. El Salvador currently possesses 2,681 BTC, purchased across 12 transactions at an average price of $42,600 each.
A Pioneering Move in Cryptocurrency Adoption
El Salvador’s groundbreaking decision to adopt Bitcoin as legal tender in 2021 marked a historic milestone. The “Bitcoin Law” placed Bitcoin on the same level as the U.S. dollar, allowing for the payment of goods, services, and taxes in the digital currency. This move has not only diversified the nation’s economic strategies but also positioned it as a leader in the global embrace of cryptocurrencies.
Diverse Revenue Streams Enhance Bitcoin Holdings
According to President Bukele, El Salvador’s Bitcoin revenue continues to grow through various avenues. These include profits from a citizenship passport program, which assists local businesses in converting Bitcoin to U.S. dollars, earnings from Bitcoin mining operations, and income from government services. Furthermore, the introduction of the “Freedom VISA” in December has opened up residency opportunities. This program offers residency to individuals who invest a minimum of $1 million in Bitcoin or tether (USDT) stablecoins, with a cap of 1,000 people annually. Successful participants are granted long-term residency and a pathway to full citizenship.
El Salvador’s venture into Bitcoin has not only resulted in significant financial gains but has also paved the way for innovative revenue generation methods. Through strategic investments and progressive policies, the country has solidified its position as a frontrunner in the cryptocurrency domain, setting a precedent for other nations to follow.
