Mark Weaden
El Salvador increases its total holdings to $31 million at the right time as Bitcoin dips
El Salvador made history this year as the first country to make Bitcoin (BTC) a legal tender. Just months after its inception the young president has purchased another 150 BTC, bringing the total holdings to 700, with a value of roughly $31 million.
Since its advent, it has had a mixed reception from citizens. But, the maverick nature of Nayib Bukele’s presidency explains his reasoning for the purchase as “They can never beat you if you buy the dips.” With Bitcoin dropping to sub $40,000 today, it was a shrewd acquisition by Bukele.
El Salvador’s relationship with Bitcoin
Crypto came into effect on the 7th of September and the decision isn’t without its critics, but the president is determined to see this project succeed. The hope is to be able to bring financial prosperity to the country using a new method for success, after having seen little benefit from integrating the dollar back in 2001.
The public came out in arms when Bitcoin Law was passed in the first week of September. However, Bukele hopes to educate the El Salvadorians about the benefits of cryptocurrency, especially concerned with remittance payments. With many El Salvadorian’s sending money from the U.S., the financial advantages of sending money without incurring any charges are very inviting.
The mainstream adoption of Bitcoin in El Salvador
There are obvious challenges when it comes to integrating Bitcoin into an entire nation of people. The complexities of the technology may not appeal to everyone. But, it’s principally a currency and if the public buys into the project, it could transform their economy.
As the first nation to adopt the Dollar and Bitcoin at the same time, El Salvador is in a great position to provide a blueprint for other nations to follow. Bukele has installed over 200 bitcoin ATMs across the nation, as well as providing a connection to family in the U.S. by providing El Salvadorian communities with ATMs to make payments.
El Salvador will have to endure rough moments, as Bitcoin is yet to find real stability. Clear communication between the government and its public will give this project the opportunity to flourish.
