El Salvador made history by becoming the first country to adopt Bitcoin as legal tender on September 07, 2021. This bold move aimed to integrate around 70% of Salvadorans without bank accounts into the formal economy, making remittance transfers cheaper and faster. The new law mandated that all businesses accept Bitcoin as a form of payment.
Additionally, the country introduced the "Chivo" wallet and offered $30 in Bitcoin to citizens who embraced it. During this time, El Salvador purchased 550 Bitcoins.
- Developments in 2021
Throughout the rest of 2021, President Bukele demonstrated El Salvador's commitment to Bitcoin by purchasing BTC multiple times:
-- September 20: +150 BTC
-- October 28: +420 BTC
-- November 26: +100 BTC
-- December 04: +150 BTC
-- December 21: +21 BTC
Moreover, plans for constructing a futuristic "Bitcoin City" at the base of a volcano were announced, alongside a groundbreaking initiative to utilize geothermal energy for Bitcoin mining. Additionally, El Salvador received regulatory approval for the pioneering "Volcano Bond," the world's first Bitcoin Bond, to be issued in Q1 2022, accumulating a total holding of 1391 Bitcoins.
- 2022: A Year of Resilience
Despite Bitcoin's price fluctuations in 2022, President Bukele remained steadfast in his Bitcoin mission, consistently buying BTC throughout the year:
-- January 22: +410 BTC
-- May 09: +500 BTC
-- July 01: +80 BTC
In a bold move on November 17, President Bukele announced the daily purchase of one Bitcoin, further solidifying El Salvador's commitment to the cryptocurrency, resulting in a total holding of 2425 Bitcoins.
- Innovations in 2023
El Salvador continued to push boundaries in 2023, passing a new migration law offering expedited citizenship to foreigners who donated Bitcoin to support national development projects. This initiative aimed to attract crypto investors and entrepreneurs to the country.
- Successes in 2024
By March 21, 2024, El Salvador had amassed a $83 million profit from Bitcoin, excluding various other revenue sources, such as from their passport program, converting BTC to USD for local businesses, mining, and government services. Additionally, Bitfinex Securities launched tokenized debt for an airport hotel in El Salvador, further expanding the country's integration of Bitcoin. By May 14, El Salvador had mined 474 Bitcoins using geothermal energy, bringing the total holding to 5769 Bitcoins.
- The Strategy: Buying Bitcoin
El Salvador's strategy remains clear: to continue buying BTC as long as possible. The program to purchase 1 BTC per day underscores this unwavering commitment, resulting in a $72 million profit to date.
- The El Salvador Effect
President Bukele's visionary approach to Bitcoin has garnered international attention. His recent meeting with the President of Argentina to discuss Bitcoin and the economy exemplifies the growing global interest in adopting cryptocurrency. With nearly three years since El Salvador accepted Bitcoin as legal tender, other countries are starting to take notice, indicating a potential shift towards embracing Bitcoin on a broader scale.