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

full version at cointribune

Salvadoran President Nayib Bukele reiterated 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 doubled down on efforts to integrate BTC into the national economic fabric, disregarding reservations voiced by the IMF.

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

For security reasons, the Salvadoran government recently transferred a significant portion of its Bitcoin holdings to a cold wallet, storing them in a physical vault on national territory.

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A winning strategy despite still modest adoption

Thanks to this regular purchase strategy, El Salvador has benefited from the recent rise in the price of Bitcoin. 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 in value and usage in the future.

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

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