1 bitcoin per day: El Salvador’s visionary bet for its economic future

The Salvadoran president Nayib Bukele reaffirmed his country’s determination to bet on Bitcoin, announcing that El Salvador will continue its acquisitions at the rate of one BTC per day until the cryptocurrency “becomes unaffordable with fiat currencies.” This decision reflects El Salvador’s unwavering belief in the long-term potential of Bitcoin.

El Salvador bets on Bitcoin for its economic future

In September 2021, El Salvador made history by becoming the first country to recognize Bitcoin as legal tender alongside the US dollar. Since then, the government has redoubled its efforts to integrate BTC into the national economic fabric, disregarding the reservations issued by the IMF.

Launched in November 2022, the “1 Bitcoin per day” program embodies El Salvador’s intention to build up BTC reserves in the long term. The Bitcoins acquired daily are stored in the same wallet that was recently used to secure a substantial portion of the country’s BTC holdings.

In a bid for security, the Salvadoran government recently transferred a significant portion of its Bitcoin holdings to a cold wallet, keeping them in a physical vault on national territory.

A successful strategy despite still timid adoption

Thanks to this regular purchase strategy, El Salvador has managed to benefit from the recent rise in Bitcoin prices. With 5,748 BTC held, representing more than $360 million, the country currently records a capital gain of $57 million.

Although El Salvador’s BTC reserves remain modest compared to those of other governments or companies, such as MicroStrategy, the country is betting on Bitcoin as an asset destined to gain value and use in the future.

The recent launch of a blockchain explorer by the National Bitcoin Office (ONBTC) further demonstrates El Salvador’s commitment to transparency in its BTC transactions.

El Salvador’s unwavering commitment to Bitcoin, materialized by its daily purchases and ambitious goal, reflects the country’s confidence in the potential of crypto. Despite still limited adoption among the population, the government persists in its strategy, convinced that Bitcoin will be a vector of economic growth for the country.