El Salvador’s President Nayib Bukele has shed light on the nation’s Bitcoin investments, revealing a potential profit margin of over 40% from its holdings. Despite earlier criticisms during Bitcoin’s price downturns, Bukele emphasized the current market upswing, indicating substantial gains if the assets were to be liquidated now.
El Salvador, which adopted Bitcoin as legal tender alongside the U.S. dollar in September 2021, has no plans to sell its cryptocurrency holdings. The country’s Bitcoin acquisition strategy includes a citizenship program offering expedited naturalization in exchange for Bitcoin donations, contributing significantly to its treasury. El Salvador currently holds 2,381 Bitcoins, acquired at an average price of $44,292, with current valuations suggesting a noteworthy increase in investment value.
The Nayib Bukele Portfolio Tracker, an online tool providing real-time data on the country’s Bitcoin holdings and their cost basis, confirms this strategic accumulation and the subsequent rise in Bitcoin’s market price.
El Salvador’s financial standing has seen improvement, with its bonds, particularly those due in 2052, trading above 80 cents on the dollar, according to FactSet data. President Bukele’s commitment to Bitcoin is evident in his principle that “1 BTC = 1 BTC,” emphasizing his belief in the enduring value of the cryptocurrency regardless of market volatility.
Bukele highlighted the extensive negative coverage by mainstream financial outlets during the 2022 Bitcoin bear market, contrasting it with their current silence as the country stands to realize significant profits. The President warned against potential future misinformation about El Salvador’s Bitcoin strategy.
However, skepticism has been voiced, notably by Bitcoin critic Peter Schiff, who challenges the notion of realized gains until the assets are actually sold. Despite criticism from various quarters, including the International Monetary Fund (IMF), El Salvador remains resolute in its cryptocurrency strategy. Plans include introducing Bitcoin-backed bonds and developing Bitcoin City, a proposed tax-free haven for crypto investments.
El Salvador’s unwavering commitment to Bitcoin as legal tender showcases defiance against traditional financial criticisms. This stance is further supported by the country’s plans to issue passports to investors contributing significant amounts in cryptocurrency. The recent re-election of President Nayib Bukele and Vice President Félix Ulloa’s confirmation of continuing Bitcoin as legal tender underscore the nation’s dedication to its cryptocurrency initiatives.
