If El Salvador were to sell its holdings, it would make a profit of more than 40% on its Bitcoin investment, according to statements made by its president, Nayib Bukele.
Despite the controversy and diverse opinions that El Salvador's adoption of Bitcoin has generated, the government has reiterated its commitment to maintaining its holdings of this cryptocurrency.
Nayib Bukele, current president of El Salvador, who was re-elected in the last elections that took place earlier this month, went to X (formerly Twitter), to reiterate its commitment to the market-leading cryptocurrencyOn several occasions, the Salvadoran president has expressed his enthusiasm for Bitcoin, due to its potential to act as a hedge against inflation and help stabilize the country's economy.
Bukele took advantage of his recent publication to emphasize that, thanks to the impressive rise that Bitcoin has experienced in the market recently, El Salvador has profits of more than 40% with its investment in this cryptocurrency. However, the Salvadoran president reiterated that he has no plans to sell his BTC holdings in the short term, a decision that may be driven by political considerations as the country seeks to position itself as a leader in Bitcoin innovation and disruption.
The impact of Bitcoin's price surge
El Salvador's unrealized gains from Bitcoin investments have positively impacted the nation's economy. According to its president, thanks to the BTC price surge, only bitcoin purchases on the market are significantly increasing their treasury reserves.
In the post on the social media, President Bukele also noted that when the market price of Bitcoin was low, many were quick to write numerous articles about the alleged losses the country was experiencing and how these were affecting the population. However, now that the market price of Bitcoin has increased significantly, surpassing $60.000 per unit, very few mention that selling their BTC holdings would result in a considerable gain.
The country's adoption of Bitcoin marked an important milestone for both the nation and the cryptocurrency industry. El Salvador became the first country in the world to adopt Bitcoin as legal tender; a decision that has earned it recognition and criticism globally.
Freedom Visa: A source of bitcoins for El Salvador
In addition to highlighting the profits he would make if he were to sell his current Bitcoin holdings, Bukele also mentioned that the main source of BTC for El Salvador is his citizenship visa program.
Until recently, the country had announced several investments in the most capitalized cryptocurrency on the market. Even in November 2022, Bukele revealed that he would apply a DCA strategy to buy bitcoins on a recurring basis. He noted that he would invest in 1 BTC daily, taking advantage of the low prices of the cryptocurrency, which at that time was trading at over $15.000.
The country’s National Assembly has also approved funding for bitcoin investments. However, according to Bukele’s revelations, the Freedom Visa program is his main “source of bitcoins.”
Through this program, El Salvador grants citizenship to those investors who invest $1 million in BTC in the country. As reported by this media last week, to date it is known that the nation has granted this visa to 7 foreign investors.
It is estimated that El Salvador has more than 2.380 bitcoins in its treasury, as of today.
El Salvador to implement KYC on BTC transactions
The National Bitcoin Office of El Salvador has announced the government's intention to modify the Law on Supervision and Regulation of the Financial System, to require the application of the Know-Your-Customer (KYC) protocol in Bitcoin transactions.
This law will allow financial authorities to access the private data of Bitcoin users, which is why it is considered by many Bitcoiners as a threat to financial privacy rights.
Continue reading: Bitcoin price hits $60.000 for the first time since 2021
