by John Palomino
El Salvador has accumulated more than $30 million in profits by retaining bitcoin reserves, after becoming the first country in Latin America to adopt this digital currency in an initiative led by President Nayib Bukele since 2021.
Bitcoin, the most used cryptocurrency , soared this Wednesday, reaching November 2021 levels and exceeding $60,000 , after surpassing $57,100 the day before, which has generated profits for the Central American country.
Since 2021, the Salvadoran government has implemented a regular bitcoin purchasing strategy, acquiring 2,846 BTC to date, as shown on this website . The total cost of these investments amounts to $120,932,588.15 , while their current value is $155,807,215.61 . This represents a 28.05% profit , which shows the success of the strategy.
The adoption of bitcoin as legal tender has generated controversies, mainly from international organizations such as the International Monetary Fund (IMF) and the internal political opposition. However, the economic results suggest that Bukele’s strategy is working.
In recent statements during the Conservative Action Policy Conference (CPAC), held in Washington, Bukele (pictured above) criticized the traditional financial system and highlighted the indiscriminate issuance of currencies as a fundamental problem.
Can the government of the United States really keep printing unlimited amounts of money out of thin air?
¿Puede seguir el gobierno de los Estados Unidos imprimiendo cantidades ilimitadas de dinero de la nada? pic.twitter.com/dLo9d0zNzv
— Nayib Bukele (@nayibbukele) February 26, 2024
Bukele’s vision regarding new digital finance has been translated into policies that include the deregulation of emerging technologies such as Artificial Intelligence and blockchain technology . Furthermore, he has stated that bitcoin, being decentralized and limited issuance, offers an alternative to this traditional model.
The price of bitcoin has seen a significant increase in recent days, surpassing $60,000 and showing a 42.38% increase so far this year. Experts predict that this bullish trend could continue with possible new all-time highs on the horizon.
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As an enterprise reporter for ADN America, John Palomino’s coverage is wide-ranging and includes culture, politics, and Latin American affairs.
Photo “Nayib Bukele” by Gobierno Danilo Medina.CC BY-NC-ND 2.0.
