Closeup of silky El Salvador flag
El Salvador, popularly known as the city of Bitcoin, has now added a total of 21 BTCs to its portfolio.
This revelation came in an announcement by the country’s president Nayib Bukele that he released on his Twitter social media page earlier today.
He announced that to commemorate the commencement of the mother coin’s bullish run, the government has purchased 21 BTCs equivalent to approximately $1 million as at press time.
The recent purchase is not the country’s first instance of Bitcoin acquisition. Earlier in November, El Salvador’s president announced his country’s acquisition of $5.4 worth of Bitcoin at the time.
El Salvador’s series of Bitcoin purchases is a first of its kind; no country in the global financial space has publicly acquired as much BTC as the tropical country has done.
El Salvador, The Bitcoin City
The Central American country has gained the appellation of Bitcoin City from crypto community members globally. Before the country’s infamous reputation globally in the crypto space, it has been a staunch supporter of the cryptocurrency ’cause’, rallying for global integration and regulation of the innovative system.
The nickname became widely adopted shortly after the country’s radical adaptation of cryptocurrency into its traditional financial systems when it adopted Bitcoin as a legal tender.
El Salvador currently has two legal tenders, namely the US dollar, which it adopted as a legal tender in the early 2000s, in 2001 and the newly inaugurated Bitcoin, which it launched in September this year.
El Salvador’s Bitcoin Troubles
The country’s nationwide adoption of BTC didn’t come with its setbacks and backlash from the different critics and experts locally and globally.
There have been several large protests and demonstrations against the nation’s Bitcoin implementation policy by its citizens, some experts even citing the technological issues that the country’s proprietary crypto wallet Chivo. Protests and criticism leveraged the nation’s tech failure to critique the new policy expressing that the industry is underdeveloped and its adoption can lead to economic instability.
Despite these setbacks, crypto enthusiasts and proponents vehemently argue that El Salvador’s pioneering run could be a mirror for futuristic global financial frameworks.
El Salvador’s planned move to issue $1 billion worth of Bitcoin- leveraged bearer bonds in partnership with Blockstream has seen heavy criticism and skepticism by critics and international financial bodies.
Critics have claimed to understand the reason for the country’s Bitcoin bonds development, revealing that the nation initiated the project due to its inability to secure a $1.3 billion loan from the International Monetary Fund (IMF) earlier this year.
The reluctance of the IMF to issue loans to the Central American country can be attributed to its open skepticism about its ambitious adoption of Bitcoin.
Experts and Analysts have subsequently argued to and fro regarding the scenario of Bitcoin bonds adaptation. A major consensus has been reached: countries that leverage the Bitcoin Bonds might face more difficulties securing loans from existing traditional financial institutions. The skepticism projected is due to their perceived abysmal creditworthiness.
Bitcoin’s Possible Bullish Run
The most valuable cryptocurrency in the world is just bits away from the $50,000 price mark.
As of press time, it trades at $49,118 on the Binance exchange, but it is backed by experts and several technical indicators for a strong bullish run.
Its price decrease is still at a 14% low this month, despite its sequential gains last week.
