El Salvador’s President Nayib Bukele has reaffirmed the country’s commitment to its Bitcoin holdings, asserting that they will not be sold despite the significant rise in the cryptocurrency’s market value. Bukele emphasized that regardless of fluctuations in price, the intrinsic value of Bitcoin remains constant, stating, “At the end 1 BTC = 1 BTC.” This stance comes amidst criticisms and doubts surrounding the country’s decision to adopt Bitcoin as legal tender in September 2021.
Bukele highlighted the irony of the situation, pointing out that when Bitcoin’s market price was low, there were numerous articles speculating about supposed losses incurred by El Salvador. However, with the recent surge in BTC’s value, the country stands to make a profit of over 40% if it were to sell its holdings. Despite this potential windfall, Bukele asserted that El Salvador will hold onto its BTC investments.
The president’s unwavering support for BTC has garnered both praise and criticism. Supporters commend Bukele for his pioneering vision and steadfast commitment to accelerating the adoption of cryptocurrency. Conversely, critics, like gold bug Peter Schiff, question the realization of profits until they are actually sold. Nevertheless, Bukele remains resolute, responding to detractors with confidence.
Bitcoin as Legal Tender
El Salvador’s dedication to BTC extends beyond mere investment. The country’s Vice President Félix Ulloa confirmed plans to maintain Bitcoin as legal tender and proceed with ambitious projects such as the issuance of BTC-backed bonds and the construction of BTC City, a proposed tax-free crypto haven. Despite repeated warnings from the International Monetary Fund (IMF) urging El Salvador to abandon BTC as legal tender due to potential risks and costs, the government has remained steadfast in its commitment to cryptocurrency.
In the face of skepticism and opposition, President Nayib Bukele’s unwavering support for Bitcoin underscores El Salvador’s determination to chart its own course in the realm of digital currency. Whether Bitcoin proves to be a boon or a bust for the nation remains to be seen, but for now, El Salvador stands firm in its belief in the future of cryptocurrency.