El Salvador to buy 1 BTC every day

17 Nov 2022

As the world’s first country to adopt Bitcoin as legal tender last September, El Salvador is now returning to purchase the world’s largest cryptocurrency after pausing due to the bearish market in recent months. 

President of El Salvador, Nayib Bukele, announced on Wednesday that the country would resume Bitcoin buying each day starting from Thursday. El Salvador made its last Bitcoin purchase in July this year.

The Central American nation started buying Bitcoin in September 2021, immediately after it was made legal tender in the country, Cointelegraph reports, when Bitcoin was in the middle of a bull market. Yet, with the onset of the bear market by Q2 this year, El Salvador’s initial Bitcoin purchases were viewed by many as a gamble that resulted in heavy losses.

As it stands, El Salvador holds 2,381 BTC, with an average buying price of $43,357. The country has therefore spent close to $103.23 million on its Bitcoin purchase, with the value of the same BTC currently at $39.4 million.

President Bukele’s announcement of the new Bitcoin buying plans comes at a time when the cycle low could help the country offset some of the past losses made over the next few months, the Cointelegraph report adds.

According to the government, Bitcoin has been key in helping to lower the costs of cross-border remittances and has also boosted El Salvador’s tourism sector.

Bukele has long been a Bitcoin advocate and is of the opinion that the world’s largest cryptocurrency would be beneficial for the country’s financial health, Coingape reports. This is despite ongoing warnings issued by the International Monetary Fund and World Bank to withdraw from its Bitcoin plans. However, the president was undeterred, and he continued to “buy the dip.”