El Salvador pledged last November to buy one token a day to add to the national treasury
El Salvador’s president, Nayib Bukele, at the inauguration of the February 3 Hydroelectric Power Plant in San Luis de la Reina, October 19, 2023. © Getty Images / SOPA Images / Contributor
The price of bitcoin has more than doubled in the twelve months since El Salvador announced its ambitious plan to add the world’s most popular cryptocurrency to its national treasury.
On November 17, 2022, Salvadoran President Nayib Bukele committed to buying one bitcoin on a daily basis.
If the Central American country has stuck to its plan, by now it would have managed to amass a total of 365 bitcoins, which today are worth about $13 million, according to Bitcoin historian Pete Rizzo, as cited by several cryptocurrency-focused media outlets.
However, the cost basis for these acquisitions is reportedly notably lower at $9.5 million, or a $3 million gain.
Investing in bitcoin was not the only crypto-friendly initiative pushed by Bukele. El Salvador accepted bitcoin as legal tender back in September 2021. Later that year, the head of state announced plans to build a ‘Bitcoin City’ funded initially by bitcoin-backed bonds.
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Bitcoin purchasing efforts, along with an energetic push towards the cryptocurrency, have boosted tourism, but have also drawn the scrutiny of international regulators, with skepticism growing over the lack of transparency regarding the actual purchases.
The price of the world’s largest cryptocurrency increased 29.2% in the last 30 days and recorded an impressive growth of 121.6% in the past year. On November 16, 2022, bitcoin was trading around a $16,000 price level. It is currently trading above $36,000.
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