El Salvador is ready to add more Bitcoin to its national reserves, the President of the Central American nation has revealed. Nayib Bukele, via Twitter, has announced that starting Friday, November 18, El Salvador will one day buy one Bitcoin. Currently, the overall crypto market is struggling with a slump following the collapse and bankruptcy of crypto exchange FTX. Bitcoin is currently trading at around $16,800 (approximately Rs 13.7 lakh).
The country that became the first country in the world Legalize Bitcoin as a legal tender in September 2021, continue to take the crypto approach despite the ongoing downturn.
Bukele’s announcement comes weeks after state bank BANDESAL denied to give away the above details of El Salvador BTC purchased for ALAC El Salvador — a non-governmental anti-corruption agency.
Despite warnings from International Monetary Fund (IMF) Against the use of BTC as a legal tender, El Salvador has continued to show support for Bitcoin.
Since its establishment Bitcoin ATM to create a government-backed Bitcoin wallet called Chivo For the people of Salvador, Bukele has launched initiatives focused on expanding crypto adoption and use cases in his country.
Follow Electronic moneySalvador’s coffers total 2,381 BTC, which now amounts to $40 million (approximately Rs 325 crore).
Back in May, El Salvador bought the biggest drop ever 500 Bitcoins with an average price of $30,744 (approximately Rs 24 lakh) per BTC. However, over the past year, the value of these BTC holdings has dropped significantly from $103.9 million (approximately Rs 850 cores) to around $45 million (approximately Rs 372 cores).
As of July, El Salvador’s official Bitcoin wallet, called Chivo processed $52 million (approximately Rs.410 crore) in these transfers. In the first five months of this year, remittance deposits on Chivo grew by 3.9%, to $118 million (approximately Rs 933 crore). Chivo does not deduct any commission when it comes to supporting BTC to US dollar transactions.
