El Salvador becomes first country to purchase Bitcoin, reserves surpass $400 million
El Salvador, the first country to make Bitcoin a fiat currency and adopt a Bitcoin investment strategy for its treasury, has now amassed over $400 million in Bitcoin.
President Nayib Bukele has led efforts to pass a law making Bitcoin a fiat currency in 2021. Since then, the country has been purchasing Bitcoin through daily and regular purchases announced by Bukele on X.
In addition to direct purchases, El Salvador demonstrates the country’s commitment to building a circular Bitcoin economy by generating Bitcoin through a passport program, converting BTC to dollars for businesses, and mining Bitcoin.
Bukele recently revealed the government’s Bitcoin address to the public for the first time. Bukele said the bitcoins are stored in state-run “piggy bank”-style refrigerated storage vaults. He also mentioned that he would purchase one Bitcoin every day “until Bitcoin becomes unaffordable as fiat currency.”
El Salvador has so far purchased over 5,700 BTC at an average price of around $42,700. With the price of Bitcoin recently surpassing $70,000, the country’s holdings increased by nearly $80 million.
The president believes Bitcoin will help boost El Salvador’s economy through tourism, remittances and foreign investment. The fixed supply of Bitcoin will also increase in value against the US dollar over time.
Bukele frequently touted Bitcoin at Now, the investment is paying off as Bitcoin soars.
Although initially controversial, Bukele’s Bitcoin play now appears to have been prescient. If adoption continues to accelerate globally, El Salvador’s significant initial investment could one day make it the world’s first Bitcoin-rich country.
