El Salvador marks a milestone this September, celebrating three years since becoming the first nation to adopt Bitcoin as legal tender.
Despite initial doubts and criticism, the country has reported a $31 million profit from its Bitcoin holdings, reflecting a significant success in its bold economic experiment.
Since its historic decision on September 7, 2021, President Nayib Bukele’s government has steadily acquired Bitcoin, purchasing one Bitcoin daily.
As of today, the country’s Bitcoin stash is valued at over $318 million, with the recent profit indicating a positive turn from earlier losses.
Crypto expert Alex Momot praised El Salvador’s gamble, noting that the financial gains affirm the country’s pioneering role in the digital asset space.
“The $31 million profit validates the risks taken and underscores the potential benefits of embracing new technologies,” Momot said.
El Salvador’s strategy included buying Bitcoin at an average price of $43,877 per coin, a move that initially saw its holdings’ value drop significantly during market downturns.
However, with Bitcoin currently trading at around $54,300, the country’s decision is proving financially advantageous.
While El Salvador’s success has drawn interest, major economies remain cautious.
The Central African Republic followed El Salvador’s lead in 2022, but larger nations have yet to adopt Bitcoin due to concerns over international relations and economic stability.