- The Central American Nation now has 2,301 BTC
- Despite the recent investment, the use of Bitcoin as legal tender remains unpopular among the public.
The President of El Salvador, Nayib Bukele, is staying true to his commitment to advancing his grand Bitcoin plan. This week a large purchase was made during the market crash and the Central American country added to its crypto reserves.
Second BTC Investment of 2021
The news was confirmed on Monday by President Bukele, who announced that 500 BTC was purchased at an average cost of $15.37 million, or $30,744 per coin. This was a better deal than the 410 BTC that was purchased in January at an average of $36,585 per token.
“El Salvador just bought the dip! 500 coins at an average USD price of ~$30,744”, President Bukele tweeted.
This brings El Salvador’s total Bitcoin holdings to 2,301 BTC.
President Bukele has continually stressed the importance of Bitcoin adoption in driving the nation’s economic and political future, and his decision to invest in a market that is crashing is a positive sign for the leading cryptocurrency.
Goats Abandoned in the Wild
While the president is a big supporter of Bitcoin, many of El Salvador’s citizens do not share his enthusiasm. Despite the government’s efforts to make crypto a viable payment option for goods and services, very few citizens have taken advantage.
The Chivo wallet, a government-run digital currency platform, was launched to promote cryptocurrency use and adoption. To incentivize downloads, users were rewarded with $30. But a survey conducted by the US non-profit National Bureau Of Economic Research (NBER) showed that most people abandoned the wallet when the reward ran out.
According to the NBER’s report, only 20% of users are still active on the platform. All of them are educated and have some savings. This suggests that the asset class is not appealing to the unbanked population, most of whom still prefer to use cash payments.
El Salvador’s decision to make Bitcoin legal tender is gaining traction in other countries. The Central African Republic recently approved its use as a payment method, alongside the CFA franc.
