El Salvador took a gamble and adopted bitcoin as legal tender in September 2021. While controversial at first, this bold bet now appears to be paying dividends for the country.
According to data from NayibTracker, El Salvador’s bitcoin holdings of 2,861 coins, purchased in a series of buys for an average price of $42,599 each, are now worth over $206 million.
This represents a 69% unrealized profit at press time. Fueled largely by Bitcoin’s meteoric 252% price increase over the year, El Salvador is currently sitting on paper profits of $84 million from its crypto treasury purchases.
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El Salvador earns Bitcoin from several sources
The Bitcoin Law passed in 2021 enables Salvadoran citizens to pay for goods, services, and taxes in Bitcoin, helping drive further adoption. Part of the country’s strategy also seems to be attracting foreign investment and new revenue streams linked to bitcoin and the surrounding ecosystem.
As President Nayib Bukele indicated via X, El Salvador is earning additional BTC from initiatives like a citizenship program, BTC to USD conversion for businesses, Bitcoin mining ventures, and crypto-denominated fees from government services.
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The “Freedom VISA” residency opportunity introduced late last year has proven popular, offering citizenship routes to those willing to invest at least $1 million in either Btcoin or Tether stablecoins.
While doubts existed around betting big on such a volatile asset, El Salvador’s embrace of Bitcoin seems to be remaking its economy and paying early dividends.
With the crypto market showing continued strength, the country appears poised to continue riding the BTC wave towards greater prosperity, assets, and opportunities on the global stage.
By backing this emerging digital currency as legal tender even before larger nations, El Salvador has staked an early claim that could position itself at the forefront of financial innovation for years to come.