In a Twitter post today, the President of El Salvador, Nayib Bukele has expressed optimism in the country’s investment in Bitcoin. The President is excited about the ongoing Bitcoin rally and vowed that the country will not sell its investment.
Bukele is optimistic that the country would recover over 100 percent of its investment and also make a profit of $3,620,277.13, if it were to sell its Bitcoin at the current market price. He further pointed out that future fluctuations in the price of BTC will not affect El Salvador’s long-term investment strategy.
Recall that El Salvador was the first country to adopt Bitcoin as a legal tender in September 2021. This development paved the way for the usage of BTC as a form of payment in any transaction in the country. At the official unveiling of Bitcoin, Bukele noted that the crypto asset has the capability to bring 70% of the citizens who lacked bank accounts into the formal economy.
After the adoption, El Salvador invested about $111,907,000 million in Bitcoin. The BTC price at the time of purchase was around $42,000. A few months after acquiring the crypto asset, the price began to plunge, becoming as huge loss for the country.
Similarly, the adoption of Bitcoin by the El Salvador government also strained the country’s relationship with international financial bodies like the International Monetary Fund (IMF). The IMF believes that the adoption would expose the country to money laundering activities and other forms of financial crime.
El Salvador looking to become one of the biggest hubs for Bitcoin – Nayib Bukele
Despite the numerous criticisms against the adoption, Bukele remained undeterred and has continued to roll out his agenda to ensuring that El Salvador becomes the biggest hub for Bitcoin and the crypto world at large.
Also, he believes the adoption has attracted researchers, crypto optimists and Bitcoin enthusiast to the country. According to reports, El Salvador recorded about 82% increase in tourism within the first half of 2022.
Meanwhile, in recent years, El Salvador has opened its doors to crypto service providers. Just recently, it granted a full regulatory license to Binance to offer crypto services in the country. As revealed, the license issued to Binance comes in two parts. First, El Salvador approved a Bitcoin Services Provider License (BSP) from the Central Reserves Bank (Banco Central de Reserve).
The second part of the license is a non-provisional Digital Assets Services Providers license (DASP), approved through the National Commission of Digital Assets (Comision Nacional de Activos Digitales).
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