Salvadoran President Nayib Bukele, in a December 4 update, reported that El Salvador’s Bitcoin investments have reached $131 million, with a profit of $3.6 million, a 2.84% increase. Bukele, who resigned as President to concentrate on his 2024 reelection bid, has no intention of selling these assets, considering the price volatility as part of a broader, long-term strategy.
El Salvador’s journey with Bitcoin began during Bukele’s first term, starting with a $10.3 million investment in September 2021. Despite a subsequent over 50% drop in Bitcoin’s price, Bukele continued to invest in Bitcoin throughout 2022, even as the value of the investments fell significantly from their initial amount.
In 2021, El Salvador became the first nation to adopt Bitcoin as an official currency. The International Monetary Fund observed that the risks associated with Bitcoin in El Salvador were lower than expected, primarily due to its limited use in the country. A report from last December highlighted the difficulties in using Bitcoin for daily transactions in El Salvador. Moving forward, the country plans to integrate Bitcoin education into its public school curriculum starting next year.
