- El Salvador adopted Bitcoin as legal tender in 2021, transforming its economy.
- The “Bitcoin Law” involves buying 1 BTC daily, leading to significant economic growth.
- El Salvador now owns close to 6,000 BTC, with Bitcoin trading at over $90,000.
Around 3 years ago, El Salvador became the first nation to actively adopt Bitcoin into its economy. Introducing the “Bitcoin Law” in 2021 – President Nayib Bukele was able to transform what was then a weak and stale economy into a profitable and less inflationary space for its citizens.
The “Bitcoin Law” is an initiative by the Latin American nation that concentrates on buying 1 BTC every day until “Bitcoin becomes unaffordable”. By doing so El Salvador became the first nation to adopt Bitcoin as legal tender. Today, El Salvadorians are able to legally use BTC to buy and sell products, pay bills, and much more.
Since the implementation of the Bitcoin Law – El Salvador saw a notable transformation in its economic activity. In that very year (2021) – when the nation began buying BTC – El Salvador saw a GDP increase of 11%, a direct contrast to 2020’s negative 7.8% GDP.
To be precise, El Salvador began buying 1 bitcoin per day on September 7, 2021. Since then, El Salvador has continued to buy the cryptocurrency and today owns close to 6,000 BTC.
On the day El Salvador began the Bitcoin law, the asset was valued at around $32,000. Since then Bitcoin has been through hell and back again in the 2022 bearish market – but today trades at its highest ever level at $90,000 plus.
So far, the nation has profited heavily from this initiative. Estimates are that El Salvador owns over half a billion dollars in BTC – and just from buying and holding the asset they have profited over $138 million.
