El Salvador’s Bitcoin bet reaps $265M profit, bolsters financial inclusion News โธ El Salvador โธ Bitcoin โธ Crypto
El Salvador’s Bitcoin bet reaps $265M profit, bolsters financial inclusion
President Bukele stated that El Salvador's Bitcoin adoption has yielded only positives for the country.
2 min read
Updated: Aug. 29, 2024 at 6:07 pm UTC
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El Salvador’s President Nayib Bukele revealed that the country has gained about $265 million after adopting Bitcoin as a reserve asset and legal tender.
Bukele shared that El Salvador has invested $135 million in Bitcoin, which has since grown to $400 million in the public wallet alone. According to him, Salvadorans who embraced Bitcoin have also seen substantial gains due to the asset’s appreciation this year.
He stated:
“El Salvador invested $135 million. Now, we have $400 million in Bitcoin in the public wallet alone. We have done well as a government. Salvadorans who used and saved it have done very well for obvious reasons, such as the price increase.”
Indeed, the country’s Bitcoin holdings have yielded over a 38% profit, driven by strategic purchases during market downturns. According to Nayibtracker data, El Salvador holds 5,856 BTC, with an unrealized profit exceeding $50 million.
Beyond financial gains, Bitcoin adoption has enhanced financial inclusion for many Salvadorans. Bukele noted:
“Many Salvadorans use it; The majority of large businesses in the country have it. You can go to a McDonald’s, a supermarket, or a hotel and pay with Bitcoin.”
No drawbacks
Bukele emphasized that adopting Bitcoin has only resulted in positives for the country, while acknowledging its growing importance in the global financial system.
According to him:
“[Bitcoin] hasnโt resulted in anything negative. On the contrary, it gave us branding, it brought us investments, it brought us tourism.”
Bukele pointed out the country’s first-mover advantage, especially as Wall Street increases exposure to Bitcoin. He noted that major financial institutions’ involvement in Bitcoin, which was unthinkable three years ago, emphasizes its growing impact.
Bukele also mentioned that some countries are now holding Bitcoin reserves or investing in Bitcoin and mining, adding that BTC is becoming a topic of debate in the US presidential campaign.
He stated:
“Right now, you have the largest funds in the world, literally the largest funds in the world. BlackRock has the largest Bitcoin ETF.”
Despite the progress, Bukele admitted that Bitcoin adoption in El Salvador hasn’t reached his desired level. However, he remains optimistic about its future potential.
Bukele stated:
“I’m not going to say it’s the currency of the future, but there’s a lot of future in that currency. I’m not the only one saying it.”
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
Nayib Armando Bukele Ortez is a Salvadoran politician and businessman who is the 46th and current President of El Salvador.