El Salvador celebrated the fourth anniversary of declaring Bitcoin its official currency with a new purchase. According to President Nayib Bukele's announcement, the country purchased 21 Bitcoins on "Bitcoin Day." The total value of the purchase reached approximately $2.3 million.
The Latin American country made history with this radical step in 2021. The law, first passed by parliament in June and then enacted in September, made El Salvador the first country to recognize Bitcoin as legal tender. Bukele announced the first official purchase on September 7, 2021.
The state's total reserves reach 6,313 BTC
With the latest purchase, El Salvador's Bitcoin holdings have increased to 6,313. According to data from the country's National Bitcoin Office, the market value of this reserve is approximately $701.8 million. El Salvador had previously implemented a policy of purchasing 1 BTC per day. This move is seen as part of the country's long-term Bitcoin strategy. In recent weeks, the National Bitcoin Office had implemented extra security measures against potential quantum threats by dividing its assets among 14 different addresses. Furthermore, the country's parliament passed a new law in July granting large financial institutions licenses to offer services based on Bitcoin and other digital assets.
Policies Conflicting with the IMF
El Salvador's Bitcoin policies have frequently sparked international debate. It was particularly stated that the public sector was required to halt Bitcoin purchases under agreements with the IMF. Indeed, in a report submitted to the IMF in July, the country's central bank governor and finance minister stated that public BTC purchases had ended in February.
However, Bukele denied these claims in a statement in March: "If the purchases didn't stop even when the world excluded us and most Bitcoiners abandoned us, they won't stop now," he said, emphasizing his resolve.
Initial purchases came at a high price
El Salvador is known to have made its first Bitcoin purchases at around $50,000. This investment, considered a risky move at the time, demonstrated the ambitious nature of the country's economic experiment. Today, despite Bitcoin's price remaining below 2021 levels, the Bukele administration appears unwavering in its strategy.
El Salvador's Bitcoin purchases continue to be a source of intense debate both domestically and internationally. Despite pressure from the IMF, the country's government remains committed to its goal of placing Bitcoin at the center of the financial system. The symbolic purchase of 21 BTC on its fourth anniversary signals that this strategy will continue.
