El Salvador Grows Bitcoin Reserves, Holding $359 Million in Crypto

El Salvador, the first country to adopt Bitcoin as legal tender, has been steadily increasing its Bitcoin reserves, currently holding about $359.58 million worth of Bitcoin.

As per recent data from crypto intelligence platform Arkham Intelligence, President Nayib Bukele’s government has been purchasing 1 Bitcoin per day since late 2022. The platform also reports that these purchases have been recorded directly on-chain since March of this year.

Source: Arkham Intelligence

We are buying one #Bitcoin every day starting tomorrow.
— Nayib Bukele (@nayibbukele) November 17, 2022

On top of that, in 2021, El Salvador made Bitcoin an official currency. This move allowed the use of Bitcoin for various transactions, from paying taxes to buying coffee.

A New York Times report said this move is quite advancing. “El Salvador’s move puts it at the forefront of a revolution in finance on the blockchain, where a parallel universe of crypto-based alternative banking services is booming and eliciting alarm from officials in Washington and beyond,” the article said.

Not a lot is happening on Bitcoin

Despite the country’s progressive stance, Bitcoin adoption in El Salvador hasn’t met expectations.

In an interview with Time Magazine last month President Bukele revealed that Bitcoin isn’t still as famous as he had hoped for. “It hasn’t had the adoption we expected. The positive aspect is that it is voluntary; we have never forced anyone to adopt it. We offered it as an option, and those who chose to use it have benefited from the rise in Bitcoin.”

Apart from this, Bukele highlighted that individuals who saved in Bitcoin have likely seen significant financial gains.

On the other hand, while discussing Bitcoin’s future, Bukele expressed uncertainty about its potential as the currency of the future, but said he remains confident in its long-term promise as a financial asset.

He also revealed that El Salvador’s initial investment of approximately $135 million in Bitcoin has grown substantially, with around $400 million currently held in the public wallet.

“I feel that it could have worked better, and there is still time to make some improvements, but it hasn’t resulted in anything negative. On the contrary, it gave us branding, it brought us investments, it brought us tourism,” he shared.

Bukele emphasized that adopting Bitcoin has delivered significant advantages for El Salvador, calling it a “net positive” for the country. He added that the benefits far outweigh any challenges the nation has faced in implementing Bitcoin as a legal tender.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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