El Salvador’s Daily Bitcoin Buys Continues Despite Market Slump

UTC by Mayowa Adebajo · 3 min read
El Salvador’s Daily Bitcoin Buys Continues Despite Market Slump
Photo: Depositphotos

El Salvador’s continued love affair with Bitcoin, even in dire economic situations such as now, positions the country as an arguable champion of crypto adoption.

El Salvador appears to have a personal business with Bitcoin (BTC), but the details of their relationship might not be known to everyone. However, the Central American nation has made it a point of duty to continue buying one Bitcoin every day. That is, despite the recent downturn that struck the global crypto market.

Over the past few days, BTC shed a notable portion of its value owing to factors like the ongoing Mt. Gox repayments and a generally bad economic situation the world over. Interestingly, however, the price dip of Bitcoin has had no effect on the country’s commitment to the asset. Under the leadership of President Nayib Bukele, the nation has continued to show great confidence in the prized asset. At least, its daily investment proves this much.

In mid-March, President Bukele made a public revelation of the cold wallet address keeping El Salvador’s Bitcoin. Since the public reveal, keen observers like data tracker BitInfoCharts have seen the nation’s “first Bitcoin piggy bank” witness a steady inflow of 1 BTC per day.

By staying true to these daily purchases, which was first announced in November 2022, it appears that the nation remains committed to its long-term vision for Bitcoin adoption.

El Salvador’s Bitcoin Accumulation Channels

Meanwhile, El Salvador’s Bitcoin strategy goes beyond simple daily purchases. The country reportedly also mines Bitcoin. It simply uses the geothermal power of the Tecapa volcano for a sustainable and innovative approach. This eco-friendly mining operation, as reported by Reuters in May 2024, has already yielded 473.5 Bitcoin (BTC) for El Salvador.

Furthermore, the nation has accepted Bitcoin as a form of payment for various government services. As Coinspeaker reported in 2021, El Salvador became the first country to adopt Bitcoin as a legal tender. That is, as it looks to somehow embed crypto into everyday lives of its citizens.

While its previous moves are already noteworthy, El Salvador’s Bitcoin experiment might be about to take another interesting turn. The government recently submitted a reform proposal. This proposal seeks to create a private investment bank that allows transactions in both Bitcoin and US dollars. The move, if approved, could greatly impact the country’s financial infrastructure, allowing for the integration of Bitcoin into the traditional banking system.

Without a doubt, El Salvador’s continued love affair with Bitcoin, even in dire economic situations such as now, positions the country as an arguable champion of crypto adoption. Their multifaceted approach, including daily purchases, eco-friendly mining, and integration into government services, also point at a nation that has fully embraced the potential of digital currencies.

Bitcoin News, Cryptocurrency News, News
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