- Despite price volatility, El Salvador has stuck to its buying spree
- El Salvador has now initiated an ‘education programme’ for the same
El Salvador’s government has been consistently purchasing 1 Bitcoin daily since March 2024. Owing to the same, now, its holdings are worth approximately 5.8k BTC or over $357 million. In fact, the nation-state has added over 150 BTCs over the last 5 months alone.
Source: Arkham Intelligence
Needless to say, El Salvador has now positioned itself as a pioneer in the cryptocurrency space. El Salvador first began buying Bitcoin in 2021, with the Nayib Bukele-led government passing Bitcoin-specific laws despite some opposition. The primary, immediate impact of these laws was that Bitcoin came to be recognized as legal tender in the country.
Since then, El Salvador has emerged as a hub for crypto-tourism in the face of greater investor interest and global attention as a crypto-friendly nation. In fact, the country has stepped into the crypto mining business too, using geothermal energy to power these mining rigs.
The government’s commitment to Bitcoin is further highlighted by its recent announcement of a Bitcoin education program for 80,000 public servants. This is aimed at increasing financial literacy and understanding of digital currencies. Similarly, Bitcoin and cryptocurrencies will now be introduced in the country’s school curriculum.
This strategy aligns with the growing recognition of Bitcoin as a store of value. This is evidenced by companies like MicroStrategy and Metaplanet also investing heavily in Bitcoin as a hedge against inflation and economic instability.
MicrosStrategy, for instance, has adopted the cryptocurrency as its primary treasury reserve asset. It’s Bitcoin holdings are now worth over $4.84 billion, more than any country in the world. Similarly, Japan’s Metaplanet recently took loans to buy BTC worth millions.
The success of El Salvador’s Bitcoin strategy could potentially influence other countries to follow suit, especially those looking for innovative ways to stabilize their economies and attract foreign investment. However, the volatile nature of Bitcoin also presents risks that must be carefully managed.
If El Salvador continues to see positive outcomes, it may set a precedent for broader global adoption of Bitcoin as a legal tender and a strategic asset.
