In a bold move, El Salvador’s President Nayib Bukele declared that El Salvador would not give up its Bitcoin reserves. The President emphasized the principle that “in the end, 1 BTC becomes 1 BTC,” and maintained a firm stance despite the fact that a profit of more than 40% could be made if sold at the current market capitalization.
Here’s everything you need to know.
Bitcoin’s position has become clear.
President Bukele shared insight into El Salvador’s significant Bitcoin holdings through his social media platform, X. This comes after the country gained international attention by adopting Bitcoin as fiat currency alongside the US dollar in September 2021.
Reflecting the uncertainty of the past when Bitcoin’s value was unstable, Bukele acknowledged media misreporting about BTC investments in El Salvador. He contrasts this with today and points out that there is a potential for gains of over 40% due to recent Bitcoin market growth.
Also read: Cryptocurrency regulation in El Salvador: First country to use Bitcoin as fiat currency
How to Source Bitcoin
Bukele said the main source of Bitcoin in El Salvador is its citizenship program. In a notable move, El Salvador’s Congress approved an immigration law that would grant expedited citizenship to foreigners who “donate” Bitcoin to government-led schemes.
President Bukele reaffirmed El Salvador’s firm resolve and said: “We are not selling. Ultimately, 1 BTC = 1 BTC — that was true when the market price was low, and it’s true now.” He highlighted the current silence while addressing critics and media channels that had previously portrayed Bitcoin adoption in El Salvador negatively.
Read more: Bitcoin (BTC) Price Reaches ATH by Weekend, but There’s a Problem.
Make future plans
El Salvador’s commitment to Bitcoin was evident through President Bukele’s 87% re-election victory. Plans include launching bond-backed Bitcoin in early 2024 and building Bitcoin City, a tax-free cryptocurrency hub.
Despite the success, the IMF warned El Salvador of the potential repercussions and urged it to comply with traditional legal tenders. President Bukele’s firm decision highlights the country’s resolve in the cryptocurrency space.
El Salvador’s innovative approach, particularly through Bitcoin City, continues to attract global attention. President Bukele’s strong stance on cryptocurrencies has positioned the country as a pioneer in navigating the evolving landscape of digital assets.