El Salvador’s Bitcoin investment has just achieved a new milestone, with 6,000 BTC, which is equivalent to $570 million.
The country’s stockpile of Bitcoins has been elevated to 6,000, with a current value of nearly $570 million, following the most recent acquisition of 1 Bitcoin on December 29. El Salvador surpassed significant economies such as Germany and Sweden to become the sixth country in the world with the highest volume of Bitcoin.
Bhutan, Ukraine, the United Kingdom, China, and the United States, which has 200,000 Bitcoins, are the countries in the order of classification above that.
El Salvador, under the leadership of President Nayib Bukele, became the first country in the world to recognize Bitcoin as legal tender in September 2021. The Central American government acquired its initial 200 Bitcoins and subsequently increased its stake, resulting in an average acquisition cost per Bitcoin of $45,465. The value of Bitcoin investments in El Salvador has increased by more than 108% to date.
The Central American nation has experienced both advantages and obstacles as a result of the adoption of Bitcoin. Residents have transitioned to digital wallets as an alternative to conventional banking, which serves as a solution for financial inclusion in a nation where the majority of the populace lacks access to banking services. Other initiatives, such as the “Bitcoin City,” were announced in late 2021 with the objective of enhancing economic activities and cryptocurrency trading.
The El Salvador Bitcoin investment has also increased tourism in the country, establishing it as a crypto-forward destination. Nevertheless, that action has elicited criticism and cautionary statements from international organizations, which express their opposition to the decision. The IMF has issued a warning regarding the potential threat to financial stability.
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