El Salvador has invested more than $1 million in the acquisition of 11 Bitcoins. In 2021, the nation established cryptocurrency as a legal tender.
El Salvador has enhanced its national Bitcoin reserve by acquiring 11 Bitcoins for $1 million. The total number of Bitcoins held by the nation is 5,980 as a result of the most recent investment. The acquisition occurs mere days after the country received a $1.4 billion development loan from the IMF.
The country consented to a reduction in the pace of implementation of certain crypto policies, particularly the one that addressed its digital wallet, Chivo, in order to secure the IMF agreement. El Salvador consented to either retire or dispose of its digital wallet.
The reserve’s value has been increasing significantly in El Salvador. The Nayib Bukele portfolio tracker, which has been monitoring Bitcoin purchases, has reported unrealized gains exceeding $125 million. This represents a reserve value increase of nearly 91.54%. The reserve is earning substantial profits on purchases made during bear markets, when prices were as low as $19,000, according to the tracker.
Despite the belief that the IMF agreement would impede the country’s pursuit of BTC, it will not. El Salvador had specified that it would continue to acquire and maintain Bitcoin. Stacy Herbert, the director of El Salvador’s national Bitcoin office, stated on X that Bitcoin would continue to be lawful tender in the Central American nation and that the government would continue to augment its strategic reserves.
Eugene Epstein, the director of trading and structured products for North America at Moneycorp in New Jersey, previously believed that El Salvador’s announcement was a public relations ploy. He said that the statement may have been intended to offset negative sentiment, but now that they are purchasing, it indicates that bitcoin has become their way.
When El Salvador consented to modify its cryptocurrency policies, there was considerable speculation. Some even believed that the IMF was coercing Salvador into granting them the development loan they had requested. Nevertheless, the most recent development serves as a testament to the ongoing progress of El Salvador’s Bitcoin accumulation.
The majority of individuals are concerned about the potential risks associated with Bitcoin and believe that it is a significant risk for governments to adopt cryptocurrency as a legal tender. Nevertheless, crypto enthusiasts have been advocating for the adoption, arguing that the benefits far outweigh the risks.
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