President Nayib Bukele of El Salvador revealed a fresh Bitcoin purchase on Twitter.
The government has acquired an additional 21 BTC, which is approximately worth $1 million at the time of this writing. Late this month, the country’s youthful leader announced the purchase of $5.4 million in Bitcoin.
El Salvador, which adopted the US dollar as its official currency in 2001, likewise declared Bitcoin legal tender in September.
Despite widespread opposition to Bitcoin adoption and technical difficulties with the government’s Chivo wallet, crypto advocates claim that the country’s massive Bitcoin experiment may provide a glimpse into the future.
El Salvador plans to issue a $1 billion Bitcoin-backed bond in 2022 in collaboration with Blockstream. Critics attribute the decision to the government’s failure to acquire a $1.3 billion loan from the International Monetary Fund (IMF), which has been openly suspicious of the tropical nation’s ambitious Bitcoin wager. According to analysts, Bitcoin bonds may make it more difficult for governments to borrow money from conventional institutions owing to their poor creditworthiness.
The bond will be used to finance El Salvador’s Bitcoin city powered by volcanoes. Given that the great majority of the population is unbanked, despite early setbacks, Bitcoin is seen as a boon for financial inclusion.
The world’s biggest cryptocurrency is already trading within inches of the $50,000 mark. It is now trading on the Bitstamp platform for $49,118. Despite reducing some losses earlier this week, Bitcoin is still down 14% this month.
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