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According to Bukele, BTC will help to reduce the cost of remittance from Salvadoran migrants who are now living overseas.
In a Twitter post on Wednesday, the President of El Salvador Nayib Bukele announced the purchase of 420 Bitcoins.
It was a long wait, but worth it.
We just bought the dip!
420 new #Bitcoin🇸🇻
— Nayib Bukele 🇸🇻 (@nayibbukele) October 27, 2021
The latest acquisition by the Salvadoran government has been priced at $25 Million according to the current rate. Salvador has also become the first government to invest in Bitcoin since September 2021, when Bukele had purchased the government’s 150 Bitcoins initially.
On his Twitter handle, the President of El Salvador disclosed that the acquisition of Bitcoins had come across very late, but has been worth the delay. The current price of Bitcoin is estimated at little above $59,000.
This autumn, El Salvador became the premier country around the globe to accept Bitcoin as legal tender with the United States dollar. According to Bukele, this will reduce the cost of remittance from Salvadoran migrants thriving overseas. Since conventional banks and financial institutions technically charge heavy fees to execute money transfers, the inclusion of cryptocurrency in the picture might be a better alternative for the system.
In totality, El Salvador’s pockets hold around 1,120 Bitcoins. According to the official data, this amounts to around $66 Million. The poverty-stricken country’s economy is greatly dependent on approximately $6 Billion in remittances sent home every year, or about a quarter of gross domestic product. Around one-fifth of households rely on cash infusions.
Nayib Bukele, who is the self-proclaimed “Emperor of El Salvador”, has gone all out on the purchase of the 420 BTC, taking advantage of the day’s price drop. According to Disruptiva magazine’s estimates, El Salvador purchased 200 BTC at $51,300 on September 6, followed by another round of purchase of 200 BTC at $51,500. The next day, it bought 150 BTC at $52,000 and concluded with a purchase of another 150 BTC at $45,700 on September 19.
After attaining a portfolio at above $11 million in unrealized losses, the price of Bitcoin began to redeem itself by realizing newer highs.
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