El Salvador’s president has declared that his government will start purchasing 1 Bitcoin (BTC) daily starting tomorrow.
Bitcoin advocate and president of El Salvador Nayib Bukele has declared that his government will start adding one bitcoin (BTC) to its holdings every day, starting from November 18. Bukele made the pronouncement in the early hours of Thursday. The recent declaration underlines the El Salvadoran president’s confidence in the firstborn crypto amid market turbulence.
We are buying one #Bitcoin every day starting tomorrow.
— Nayib Bukele (@nayibbukele) November 17, 2022
El Salvador, the first country to make BTC legal tender in September of last year, currently holds about 2,381 BTC following a series of purchases that began with a 400 BTC procurement a day before it adopted the asset as legal tender.
Despite the growing unrealized losses the country has experienced over the months incurred due to the persistent bear market, Bukele and the El Salvadoran financial authorities have not lost confidence in the asset, as the country has continuously purchased more tokens, buying 500 in May and 80 in July.
With the recent proclamation, El Salvador’s BTC holdings are estimated to increase to 2,425 by year-end, as a bitcoin a day would translate to a cumulative purchase of 44 BTC for the rest of the year.
Amidst the prevailing bear market and the cold Crypto Winter, El Salvador’s BTC holdings which were procured at an average cost of $105M, has fallen to an estimate of $39.5M, marking a 62% decline. Notwithstanding, Bukele, like MicroStrategy’s Saylor, remains untethered, as further indicated by his decision to procure more.
Furthermore, several international financial organizations have criticized the El Salvadoran government for its BTC bet and for adopting the asset as a legal tender. The IMF, in particular, urged Bukele’s government to revoke bitcoin’s status as legal tender in the country in January. Bukele’s confidence in BTC has not waned, regardless.