By CentBit.Online – Crypto & Blockchain Expert, Bangladesh
El Salvador has reaffirmed its status as a Bitcoin trailblazer by becoming the sixth country in the world to surpass 6,000 BTC in national reserves. On December 29, 2024, the Central American nation added one more Bitcoin to its portfolio, bringing its total holdings to 6,000.77 BTC, valued at approximately $569.3 million, according to data from the National Bitcoin Office.
El Salvador’s Bitcoin Milestones
Since launching its Bitcoin adoption strategy in September 2021, El Salvador’s cryptocurrency investments have yielded significant gains. The country purchased its first 200 BTC just before declaring Bitcoin legal tender and has since achieved a 108.02% growth in its Bitcoin portfolio, with an average purchase price of $45,450 per coin.
Among nations with major Bitcoin reserves, El Salvador now ranks sixth, trailing the United States, China, the United Kingdom, Ukraine, and Bhutan, as reported by BitBo’s Bitcoin Treasuries tracker.
Despite international criticism, including from the International Monetary Fund (IMF), President Nayib Bukele remains committed to Bitcoin as a central pillar of the country’s economic strategy.
Strengthening Bitcoin Reserves
The Bukele administration has signaled its intention to further accelerate Bitcoin acquisitions, according to National Bitcoin Office Director Stacy Herbert.
- Chivo Wallet Update: The government is reportedly phasing out its official Chivo wallet, encouraging private-sector wallets to step in.
- IMF Negotiations: A $1.4 billion deal with the IMF remains under negotiation. These discussions, strained by Bitcoin policies, could mark a pivotal moment for the nation.
US States Exploring Bitcoin Reserves
In the United States, several states are exploring Bitcoin reserve policies as a hedge against economic uncertainty:
- Ohio: A new bill proposed by House Republican Leader Derek Merrin seeks to add Bitcoin to the state’s treasury reserves.
- Texas: Representative Giovanni Capriglione introduced the Texas Strategic Bitcoin Reserve Act on December 12, mandating Bitcoin reserves for at least five years.
- Pennsylvania: Representative Mike Cabell proposed a bill in November to allocate up to 10% of the state’s balance sheet to Bitcoin.
Corporate Bitcoin Accumulation
Private sector entities have also expanded their Bitcoin holdings significantly:
- MicroStrategy and Metaplanet continue to bolster their reserves.
- MARA Holdings announced the purchase of 11,774 BTC on December 10.
- Riot Platforms, a Bitcoin mining company, plans to raise $500 million through a private bond offering to further increase its Bitcoin reserves.
US Government Bitcoin Policy Outlook
While discussions around a Bitcoin reserve policy for the U.S. government have gained traction, a December 27 report by Galaxy Digital’s Alex Thorn suggests the government will focus on managing its existing Bitcoin holdings in 2025 rather than acquiring more.
Conclusion
El Salvador’s Bitcoin journey exemplifies how national adoption of cryptocurrency can drive economic innovation. Meanwhile, the growing interest in Bitcoin reserves by U.S. states and private corporations signals a broader trend of crypto adoption in the global financial landscape.
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