El Salvador's bitcoin reserve now exceeds $644M, with a notional profit of over $357M, a 124% gain despite international warnings.
In 2021, when El Salvador chose to become the first country in the world to use Bitcoin as legal tender, it raised a lot of eyebrows.
President Nayib Bukele shared an update on the country's Bitcoin reserves on Sunday, proving that the decision is paying off. From an investment of just $287 million, El Salvador has reaped benefits of over $357 million, more than doubling its initial investment in four years.
El Salvador's Unrealized Gain From Bitcoin Rises To $357 Million
Although the gains are unreal in nature, El Salvador is doubling its Bitcoin reserves this year. Recently, the International Monetary Fund (IMF) issued a $1.4 billion loan to the Central American country with a strict pre-condition that it reduce its $BTC purchases.
However, according to data from the Salvadoran government’s Bitcoin Office, it continues to buy about one $BTC per day, which is more than 6,100 BTC.
The substantial increase in the value of El Salvador's bitcoin reserves has coincided with a rally in the price of BTC to its all-time high of $108k.
President Nayib Bukele shared on X that El Salvador's bitcoin portfolio now boasts a 124 percent increase over its total investment. With this increase, the total value of his Bitcoin portfolio now reaches $644 million.
El Salvador’s Policy Push for Bitcoin Usage
A vocal advocate for Bitcoin, President Bukele has promoted it as a tool to increase financial inclusion and attract investment.
Despite international scrutiny and warnings from the IMF, the country has continued to hoard Bitcoin.
It has also experimented with initiatives such as using geothermal volcanic energy to mine bitcoin and introducing a bitcoin education program for government officials.
However, the extent of $BTC ’s use in real-world transactions remains low, with estimates suggesting usage is less than 10% despite the policy push. The country’s overall lack of digital literacy is reportedly limiting widespread use.
Meanwhile, in March, El Salvador signed an agreement with Paraguay to increase oversight of digital asset service providers. The agreement aims to strengthen cooperation in overseeing cryptocurrency-related activities.
#BTC #ElSalvadorBTC #CryptoNewss #MarketSentimentToday #Market_Update