On the fourth anniversary of its Historic Bitcoin Law, El Salvador bought 21 more BTC valued at about $2.3 million.
President Nayib Bukele tweeted on X about the purchase on Sunday while calling it “Bitcoin Day.”
The Bitcoin Law, passed in September 2021, made El Salvador the first country in the world to make bitcoin legal tender, attracting its share of scrutiny and turning the country into a focal point in the broader debate on bitcoin adoption.
This new purchase illustrates the country’s continued backing of its bitcoin strategy despite all the criticism.
National Bitcoin Holdings Reach Over 6,300 BTC
After the recent purchase, El Salvador is reportedly holding a total of 6,313 BTC valued at $701.8 million based on the current market price, according to the country’s National Bitcoin Office.
These holdings’ amount indicates a certain consistency in acquisitions that El Salvador has made through time.
The news bolsters El Salvador as the number one nation-state holder of bitcoin and highlights the country’s commitment to add bitcoin into the economy and as part of its long-term financial decision making.
Strategic Security and Financial Regulations
The most recent bitcoin buy comes on the heels of El Salvador’s Bitcoin Office implementing enhanced security by distributing its national holdings to 14 addresses to avoid risks, which included potential risks posed by quantum computing infrastructure, UnoCrypto reported.
At the same time, we reported that the country’s legislature developed its digital asset framework, passing a law that allows large financial institutions to apply to provide services to sophisticated investors using bitcoin and digital assets.
These measures reflect El Salvador’s continuing desire to balance the robust adoption of bitcoin with safeguards and a legal framework to fortify trust and resiliency.
Also Read: Freedx Receives DASP License from El Salvador’s CNAD, Aims At Expanding Crypto Services
Daily Accumulation Policy Sparks Contradiction with IMF
El Salvador’s Bitcoin Office stated that it continues to accumulate bitcoin daily, purchasing 1 BTC each day as part of dollar-cost averaging.
This amount of bitcoin purchases every day contradicts an official statement made in July to the IMF by the President of the Central Bank and Minister of Finance. They stated that the country had stopped buying bitcoin in February to fulfill the proposed terms of a loan agreement.
President Bukele rejected this claim dismissively earlier this year, stating on X that he would never stop accumulating bitcoin, no matter the pressure from international organizations.
El Salvador’s position is one of defiance against those institutions in the pursuit of realizing its vision for a bitcoin-influenced financial system.
Also Read: El Salvador President Bukele Defies IMF, Vows To Continue Bitcoin Accumulation
Bitcoin at the Core of National Affairs and Global Partnerships
El Salvador’s evolving relationship with bitcoin extends far beyond its use as a strategy for its treasury.
Earlier this year, UnoCrypto reported that El Salvador’s bitcoin investments had more than $350 million in unrealized profits, boosting its reserves and validating the long-term adoption strategy.
Additionally, we reported that in a partnership with CitizenX, the government expanded its “Adopting El Salvador Program,” which offers fast-tracked citizenship to investors who are willing to invest $1 million in bitcoin or USDT.
This effort not only stimulates foreign investment but also continues to institutionalize cryptocurrency into El Salvador’s governance, economic planning, and international alignments, thereby solidifying El Salvador’s role as a national leader and pioneer of digital assets.