El Salvador's Bitcoin Law: A Success Story
- Linda HamiltonOriginal
- 2024-11-17 16:06:16351browse
Around 3 years ago, El Salvador became the first nation to actively adopt Bitcoin into its economy. Introducing the “Bitcoin Law” in 2021
Three years ago, El Salvador made history by becoming the first nation to adopt Bitcoin into its economy. The “Bitcoin Law,” introduced in 2021 by President Nayib Bukele, aimed to revitalize the country's struggling economy.
The law mandated the government to buy 1 BTC every day, an initiative that continued until Bitcoin's price became "unaffordable." This move made El Salvador the first country to legalize Bitcoin as tender. Citizens could now use BTC to buy products, pay bills, and more.
The implementation of the Bitcoin Law had a significant impact on El Salvador's economy. In the year the country started buying BTC (2021), its GDP increased by 11%, a stark contrast to the negative 7.8% GDP growth rate recorded in 2020.
Specifically, El Salvador began buying 1 bitcoin per day on September 7, 2021. To date, the country has continued to purchase the cryptocurrency, amassing close to 6,000 BTC.
On the day El Salvador adopted the Bitcoin law, the asset was valued at around $32,000. In the following year, Bitcoin experienced a downturn in the 2022 bear market, but it later recovered and reached an all-time high of over $90,000.
This initiative has proven to be highly profitable for the nation. According to estimates, El Salvador now owns over half a billion dollars in BTC and has profited over $138 million just from buying and holding the asset.
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