El Salvador Joins the 6,000 BTC Club
El Salvador continues to make giant leaps into the country’s Bitcoin investment strategy, joining the league of countries holding over 6,000 Bitcoins. The Latin American nation’s buy of an additional 1 BTC on Dec. 29, its total reserves have risen to 6,000.77 BTC, worth $569.3 million. Its listing now joins the roster of top Bitcoin-holding countries such as the United States, China, the United Kingdom, Ukraine, and Bhutan.
Great Returns on Investment
El Salvador’s Bitcoin journey began in September 2021, when it became the first country to adopt BTC as legal tender. Its first purchase of 200 BTC at the time set the stage for a series of consistent investments under President Nayib Bukele’s administration. To date, the country has seen an impressive 108.02% return on its Bitcoin holdings, with an average acquisition cost of $45,450 per BTC.
IMF Deal Spurs Faster Buying
If the continued tension with the International Monetary Fund over its Bitcoin policies is any indication, it would appear that El Salvador has continued to double down on its crypto strategy. A $1.4 billion financing agreement with the IMF didn’t stop the country from buying $1 million worth of BTC on one day. The government could accelerate its rate of Bitcoin purchases going forward.
Chivo Wallet to Be Retired
El Salvador’s Chivo wallet, launched as a government-backed cryptocurrency wallet, is reportedly going to be either sold or phased out, said Herbert. Private sector wallets are expected to fill the gap, which will continue to provide support for BTC transactions in the country.
Challenges Ahead and Opportunities
While important, the IMF deal is not final and marks the end of four years of hard-won negotiations. The IMF has cautioned that Bitcoin is a risk to El Salvador’s financial stability and has leaned on the country to scale back its crypto ambitions. But El Salvador remains all-in on its BTC game, believing the cryptocurrency a core asset in its future finances.
With its new BTC milestone, El Salvador cements its position as a world leader in cryptocurrency adoption, powering through the opportunities and challenges toward its vision of a Bitcoin-centered economic strategy.
