El Salvador, the first nation to adopt Bitcoin as legal tender, is celebrating a major milestone as Bitcoin surged past the $107,000 mark before correcting.
The historic price rally has brought substantial gains to the country’s Bitcoin holdings, silencing many critics who once doubted President Nayib Bukele’s bold economic experiment.
Bitcoin surged to a historic high above $107,000 on Tuesday, 17 December 2024.This was followed by remarks by President-elect Donald Trump, who hinted at plans for a US Bitcoin strategic reserve akin to the nation’s strategic oil reserve.
All time highs are not what they used to be 🥲 https://t.co/FCGYbLrDzg
— Nayib Bukele (@nayibbukele) December 15, 2024
Related: Bitcoin Hits Record $106K As Trump Teases US Bitcoin Strategic Reserve Plan
Bitcoin’s Meteoric Rise And El Salvador’s Gains
The surge also followed Donald Trump’s recent US presidential election victory and the nomination of crypto-friendly Paul Atkins as the next SEC chair.
For El Salvador, this price jump has translated into a financial windfall.
President Bukele announced that the country’s Bitcoin holdings have generated over $350 million in realized gains.
This development has significantly boosted the value of El Salvador’s Bitcoin portfolio, which now exceeds $600 million.
— Nayib Bukele (@nayibbukele) December 16, 2024
The government began accumulating Bitcoin in 2021 after passing legislation to make it legal tender alongside the US dollar.
Furthermore, Bukele has been actively engaging in discussions with over 25 countries to forge cryptocurrency partnerships, following its recent agreement with Argentina as it seeks to cement its status as a world leader in Bitcoin and crypto geopolitics. This initiative is part of El Salvador’s broader strategy to promote global adoption and regulation of cryptocurrency.
Related: Inside Crypto Geopolitics: El Salvador Seeks 25 Crypto Alliances
El Salvador Continues To Have A Slow Crypto Adoption Rate
Bukele recently featured on the TIME Magazine cover. He noted that while the country’s Bitcoin strategy has been positive for the country, the adoption rate has fallen short of what he had expected.
In the interview with TIME, Bukele pointed out that Bitcoin has played a significant role in the lives of many of the nation’s citizens, along with having a positive impact on promoting tourism, branding, and showing the world that El Salvador prioritizes “being a free country, free in every way.”
El Salvador was the first country to adopt such a bold and experimental Bitcoin strategy and for Bukele, “It hasn’t been the adoption [he] expected.”
Bitcoin has had a strong presence in the nation’s economic growth, despite adoption not meeting expectations. “I feel that it could have worked better, and there is still time to make some improvements, but it hasn’t resulted in anything negative. On the contrary, it gave us branding, it brought us investments, it brought us tourism.”
Related: El Salvador President on Bitcoin: “I Expected More Adoption”
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