El Salvador has once again made headlines in the cryptocurrency world by consistently adding one Bitcoin to its national reserves daily for the past 665 days. This accumulation strategy has brought the government's Bitcoin holdings to 5,871 BTC.
Bitcoin as a Reserve Asset
Under President Nayib Bukele's administration, El Salvador initiated a daily Bitcoin purchase plan aimed at building a digital asset reserve. Currently, the 5,871 BTC are valued at approximately $342 million.
Historic Bitcoin Recognition as Legal Tender
In September 2021, El Salvador became the first country to officially recognize Bitcoin as legal tender. This move aimed to enhance financial inclusion in a country where 70% of the population does not use traditional banking services.
Mixed Public Response
Despite significant efforts to integrate Bitcoin, its use among the population remains low. A survey by the University Institute for Public Opinion found that 88% of Salvadorans have yet to use cryptocurrency. Nonetheless, Nayib Bukele remains confident in Bitcoin's long-term benefits.
El Salvador's Bitcoin accumulation strategy has garnered attention from international organizations and evoked a mixed response among the population. However, El Salvador continues to make a long-term bet on the future of cryptocurrency.
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