El Salvador became the first country in the world to make Bitcoin legal tender. Now, the country became the first one to purchase 1 Bitcoin a day. This is according to what Nayib Bukele, the president of the country, said on November 17. In this way, the country will continue to add more BTC to its reserves.
El Salvador Starts Purchasing 1 Bitcoin a Day
El Salvador, the first country in the world to make Bitcoin legal tender, is now purchasing 1 BTC a day according to Nayib Bukele. On Twitter, he wrote that these purchases will start as soon as tomorrow.
This is what he wrote:
“We are buying one Bitcoin every day starting tomorrow”
We are buying one #Bitcoin every day starting tomorrow.
— Nayib Bukele (@nayibbukele) November 17, 2022
The decision taken by El Salvador has been a strong catalyst for other market participants to do the same. For example, Justin Sun, the founder of Tron (TRX), has also announced that they are echoing Nayib Bukele’s initiative to buy Bitcoin every single day.
Meanwhile, other users like foobar suggested that this could not be a good decision for the country. It is worth taking into consideration that Bitcoin moved from $69,000 in November 2021 to below $16,000 a few days ago when the FTX exchange imploded.
The decision made by El Salvador to purchase one Bitcoin a day could be in order to reduce risk and conduct a dollar average cost strategy. This would help El Salvador avoid purchasing local tops or failing to buy the dip.
Thanks to the decision made by El Salvador, the country was able to receive large income from tourists that came to the country after the latest promotion linked to Bitcoin. Moreover, it was able to reduce the fees paid by individuals that sent funds from the United States to El Salvador.
Families were paying more than $400 million a year in fees to large companies such as Western Union or MoneyGram, among others. Additionally, in just some weeks, the number of El Salvador users using Bitcoin surpassed the number of bank accounts opened in the country.
El Salvador is currently holding 2,381 BTC, close to 0.011% of the total supply of Bitcoin. Other countries that are already holding Bitcoin (despite not taking an official decision to own or buy it) include the United States, Ukraine, and Georgia.
In the future, we could see other countries getting involved in purchasing Bitcoin. Despite that, there were many projects that have to yet be developed in El Salvador before able to become a country that fully embraced Bitcoin. Nowadays, it is possible to use this virtual currency in the country at local shops and commerces. Indeed, even small street stalls accept Bitcoin for goods and services, showing that there is a clear interest in adopting this virtual currency.
Nevertheless, El Salvador received a lot of criticism from large financial institutions, including the International Monetary Fund (IMF). The country had a difficult expansion when it comes to Bitcoin considering that most financial institutions were against the adoption of BTC by this country.