El Salvador’s President Bukele Pledges to Hold on to Bitcoin Despite Market Surges
El Salvador’s President Nayib Bukele has made a bold declaration, asserting that the country will not sell its bitcoin holdings, firmly asserting the principle that “1 BTC will equal 1 BTC in the end.” President Bukele also highlighted the potential for a profit of over 40% if the country were to sell its bitcoin while pegged to market value.
President Nayib Bukele took to his social media platform, X, to share his thoughts on Bitcoin and El Salvador’s substantial bitcoin reserves. El Salvador garnered global attention when it officially recognized Bitcoin as legal tender alongside the US dollar in September 2021.
Bukele referred to a previous incident in which El Salvador faced instability in Bitcoin prices. He noted that during that time, numerous media outlets inaccurately reported on the country’s BTC investment and published thousands of articles about their losses. However, with the recent growth in the bitcoin market, Bukele emphasized that the profits from market purchases alone would exceed 40%.
According to Mr. Bukele, the main source of El Salvador’s bitcoin is the El Salvador citizenship program. On December 21, 2023, El Salvador’s Congress approved a new migration law that expedites citizenship for foreigners who make Bitcoin “donations” towards government social and economic development programs.
Returning to his tweet, Bukele stressed that despite the expected profits, they would not sell their bitcoin holdings, reiterating that “at the end, 1 BTC = 1 BTC.” He directed his message towards critics and media channels that previously criticized El Salvador’s adoption of Bitcoin, noting their current silence.
El Salvador will continue to embrace Bitcoin as its legal tender, demonstrating the country’s commitment to being at the forefront of this new technology and inspiring cryptocurrency enthusiasts.
Nayib Bukele was reelected as president with an overwhelming 87% of the votes in his favor. The government of El Salvador plans to launch bond-backed Bitcoin in early 2024 and commence the construction of Bitcoin City, a tax-free cryptocurrency hub proposed by President Bukele.
Despite El Salvador’s success with Bitcoin, the International Monetary Fund (IMF) has been warning the country about the potential consequences of adopting Bitcoin as legal tender, urging them to remain cautious in their cryptocurrency endeavors.
President Bukele’s unwavering decision to continue holding El Salvador’s bitcoin amidst market fluctuations signifies the country’s determination in the realm of cryptocurrency. With the exciting plans for Bitcoin City, well-wishers eagerly anticipate positive developments in El Salvador, as it continues to attract global attention.