El Salvador Celebrates Three Years of Bitcoin as Legal Tender
El Salvador is commemorating three years since it made Bitcoin legal tender, a historic move that started on September 7, 2021.
This decision was intended to boost financial inclusion, streamline remittance payments, and drive financial innovation.
President Nayib Bukele’s choice to embrace Bitcoin has positioned El Salvador as a pioneering force in the digital asset world. According to Alex Momot, CEO of crypto trading platform Peanut Trade, El Salvador’s Bitcoin venture has been largely successful, despite some risks. Momot noted that while the full impact of the reform is still unfolding, the country has seen some positive outcomes.
Since adopting Bitcoin, El Salvador has been purchasing 1 Bitcoin daily, a strategy that has now resulted in a profit of over $31 million. The average purchase price for the country’s Bitcoin holdings was $43,877 per BTC, while the current value is significantly higher at $54,300. This profit reinforces the notion that Bukele’s initiative has been economically advantageous, according to Momot.
READ MORE: Japan Backs New Stablecoin Platform to Enhance Cross-Border Payments
Despite initial skepticism and significant declines in Bitcoin’s value, including a drop from a high of $69,000 to as low as $16,000, El Salvador’s Bitcoin holdings now total 5,865 BTC, worth over $318 million.
While some countries have shown interest in adopting Bitcoin, only the Central African Republic has followed El Salvador’s lead. Larger economies remain cautious, partly due to concerns about international creditor relationships.
El Salvador faced pressure from the International Monetary Fund to reconsider its Bitcoin strategy. Nonetheless, Momot and others believe that El Salvador’s bold step has paved the way for greater institutional adoption of cryptocurrencies.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
