In a bold reaffirmation of El Salvador’s pioneering stance on digital assets, President Nayib Bukele announced that the country’s Bitcoin holdings have surged in value by more than 40%. This marks a significant turnaround from earlier criticism and skepticism surrounding the nation’s 2021 decision to adopt Bitcoin as legal tender.
As of early 2024, El Salvador’s Bitcoin portfolio is valued at over $147 million**, translating to an unrealized profit of approximately **$41.6 million. The nation acquired its 2,381 BTC at an average cost of $44,292 per coin**, and with Bitcoin trading above **$61,000, the investment has proven to be both timely and strategic.
"When Bitcoin's market price was low, they wrote literally thousands of articles about our supposed losses. Now that #Bitcoin’s market price is way up, if we were to sell, we would make a profit of over 40%."
— Nayib Bukele, President of El Salvador
This public statement, shared via social media platform X, not only highlights the financial upside but also serves as a rebuttal to international critics who questioned the economic prudence of the move during periods of market downturn.
A Strategic National Experiment
El Salvador began purchasing Bitcoin in September 2021, making it the first country in the world to adopt the cryptocurrency as legal tender. The decision was met with widespread controversy—from warnings by the International Monetary Fund (IMF) to concerns over financial stability and transparency.
Yet, more than two years later, the investment is showing strong returns. Beyond market appreciation, the country has continued to grow its Bitcoin reserves through non-traditional means, particularly via its Bitcoin citizenship program.
Under this initiative, foreign investors can fast-track their path to Salvadoran citizenship by making a Bitcoin “donation” to the government. While the exact amount required isn’t publicly disclosed, the program has contributed meaningfully to the nation’s BTC accumulation—further diversifying its acquisition strategy beyond direct purchases.
Beyond Bitcoin: National Bonds on the Rise
The positive momentum isn’t limited to cryptocurrency. El Salvador’s sovereign bonds have also experienced a notable recovery. According to FactSet data, its 2052-due bonds are now trading at over 80 cents on the dollar—a significant improvement from previous lows.
This resurgence reflects growing investor confidence in the country’s economic trajectory, which many attribute to Bukele’s aggressive reform agenda and fiscal discipline. The improved bond valuation suggests that markets are beginning to view El Salvador not just as a crypto experiment, but as a nation with improving macroeconomic fundamentals.
Political Backing and Public Support
President Bukele’s re-election in February 2024 with over 85% of the vote underscores strong domestic support for his policies—including the Bitcoin initiative. His administration has framed the adoption of digital currency as part of a broader vision to modernize the economy, attract foreign investment, and provide financial inclusion for unbanked citizens.
Despite ongoing debates about centralization and governance, the government maintains it has no intention of selling its Bitcoin holdings. Instead, officials emphasize a long-term "hold" strategy, aligning with the broader philosophy of treating Bitcoin as a national treasury asset—similar to gold reserves.
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Frequently Asked Questions (FAQ)
Q: How much Bitcoin does El Salvador own?
A: As of early 2024, El Salvador holds 2,381 bitcoins, acquired at an average price of $44,292 per BTC.
Q: Has El Salvador sold any of its Bitcoin?
A: No. The government has consistently stated it has no plans to liquidate its holdings and is treating Bitcoin as a long-term reserve asset.
Q: How did El Salvador acquire additional Bitcoin?
A: In addition to direct purchases, the country has accumulated BTC through its citizenship-by-investment program, where foreigners donate Bitcoin in exchange for expedited nationality.
Q: What is the current value of El Salvador’s Bitcoin?
A: With Bitcoin trading above $61,000, the total portfolio is worth over **$147 million**, representing a gain of more than 40%.
Q: How have El Salvador’s bonds performed alongside its crypto strategy?
A: The country’s 2052-due bonds now trade above 80 cents on the dollar, signaling improved investor confidence and economic stabilization.
Q: Is El Salvador’s Bitcoin experiment considered successful?
A: Financially, yes—given the 40%+ unrealized gain and rising bond prices. Politically, Bukele’s re-election with overwhelming support suggests domestic approval. However, long-term success will depend on sustained economic integration and global recognition.
Looking Ahead: A Model for Other Nations?
El Salvador’s journey with Bitcoin continues to serve as a real-world case study for other countries considering digital currency adoption. While risks remain—particularly around volatility and regulatory scrutiny—the current market upswing has strengthened the narrative that strategic crypto investments can yield tangible national benefits.
As global interest in central bank digital currencies (CBDCs) and asset-backed blockchain solutions grows, El Salvador’s experience offers valuable insights into the intersection of innovation, policy, and public finance.
Whether other nations follow suit will depend on evolving market conditions, regulatory frameworks, and political will. But one thing is clear: El Salvador’s bet on Bitcoin is no longer just a gamble—it’s a calculated financial position with measurable returns.