El Salvador Will Buy One BTC A Day, President Nayib Bukele Tweets Plan
El Salvador is ready to add more Bitcoin to its national reserves, the Central American country’s President has revealed. Nayib Bukele, via Twitter, announced that starting Friday, November 18, El Salvador will buy one Bitcoin a day. Currently, the entire crypto market is struggling with a downturn following the collapse and bankruptcy of the FTX crypto exchange. Bitcoin is currently trading around the $16,800 price zone (roughly Rs. 13.7 lakh).
The country, which became the first in the world to legalize Bitcoin as legal tender in September 2021, continues to take a pro-crypto approach despite the ongoing decline.
Bukele’s announcement comes a few weeks after the state bank BANDESAL refused to provide details of El Salvador’s BTC purchases to ALAC El Salvador – a non-governmental anti-corruption agency.
Despite warnings from the International Monetary Fund (IMF) against using BTC as legal tender, El Salvador has continued to show support for Bitcoin.
From inventing Bitcoin ATMs to creating a government-backed Bitcoin fund called Chivo for Salvadorans, Bukele has been bringing efforts focused on increasing crypto adoption and use cases in his country.
like saying CryptoPotatothe Salvadoran treasury has a total of 2,381 BTC currently worth $40 million (roughly Rs. 325 crore).
Back in May, El Salvador bought its biggest ever dip of 500 Bitcoins at an average price of $30,744 (roughly Rs. 24 lakh) per BTC. However, over the past year, the value of these BTC assets has dropped significantly from $103.9 million (approximately Rs. 850 crore) to approximately $45 million (approximately Rs. 372 crore).
Since July, El Salvador’s official Bitcoin fund, called Chivo has processed $52 million (roughly Rs. 410 crore) in these remittances. In the first five months of this year, remittance deposits to Chivo increased by 3.9 percent, reaching $118 million (about Rs. 933 crore). Chivo does not charge any commission for facilitating transactions from BTC to US dollars.
