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In a context of turmoil in the cryptocurrency market, El Salvador maintains the course of its daily Bitcoin purchase policy. This bold decision raises questions about the long-term sustainability of the Central American country’s crypto strategy.
An unwavering determination
Salvadoran President Nayib Bukele remains steadfast in his crypto vision despite recent fluctuations in Bitcoin. Since March 2024, the country has pursued its goal of buying one Bitcoin per day, regardless of market conditions.
This continuous accumulation strategy, despite market fluctuations, reflects a long-term perspective on Bitcoin’s potential.
El Salvador currently holds approximately 5,700 BTC. To secure this substantial investment, Bukele has transferred the funds to a “cold wallet”, an offline wallet that is considered more secure. This strategic decision aims to protect national assets from the risks of hacking.
Vision of a Bitcoin Economy
Beyond simple purchases, El Salvador has broader ambitions to integrate Bitcoin into its economy. The project to create a Bitcoin bank, mentioned by Bukele in June, illustrates this desire. This institution would facilitate transfers between Bitcoin and the US dollar, potentially opening up new opportunities for investors and citizens.
Max Keiser, the president’s Bitcoin adviser, actively supports this initiative. It predicts positive economic impacts, including an increase in GDP and an improvement in the country’s credit rating within the next two years.
However, these optimistic forecasts contrast with the warnings of some economists about the dangers of such dependence on a volatile currency.
In short, El Salvador’s Bitcoin bet remains bold in an uncertain market. While other nations, such as Argentina, are showing interest in cryptocurrencies, the world is watching this unique economic experiment closely. Time will tell if this strategy will make El Salvador a visionary pioneer or expose it to great financial risks.
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Passion for Bitcoin, j’aime explorer les m©andres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. My dream is to live in a world where privacy and financial freedom are guaranteed, and I strongly believe that Bitcoin is the tool that makes this possible.
DENIAL
The views, opinions and opinions expressed in this article are solely those of the author and should not be taken as investment advice. Do your research before making any investment decisions.
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