Three years ago, President Nayib Bukele’s decision to make Bitcoin (BTC) legal tender in El Salvador made headlines around the globe. On September 7, 2021, the “Bitcoin Law” came into effect, making El Salvador the first country to adopt Bitcoin as an official currency.
Since then, the nation has experienced significant economic and social shifts, highlighting the impact and potential of this bold move.
El Salvador’s embrace of Bitcoin has been mixed with challenges and successes. The country now holds over $411 million in Bitcoin, with a more than 5,772 BTC portfolio.
President Nayib Bukele was recently sworn in for a second term, reinforcing his pro-Bitcoin stance. The country has continued to purchase Bitcoin, acquiring up to 30 BTC per month. As of May, El Salvador had more than $70 million in unrealized profits from its Bitcoin investments.
Despite the crypto market’s volatility, El Salvador’s government remains unwavering in its support for Bitcoin. The government has preserved its Bitcoin holdings and consistently invests in them. Moreover, El Salvador continues to integrate the asset into various sectors of the economy.
For instance, Salvadorian citizens can use BTC to pay for goods and services, taxes, and even through the official Chivo Wallet. The government has also implemented policies and incentives to attract crypto investments, including citizenship and mining services passports.
