El Salvador May Become One of the World’s Richest Countries Due to Bitcoin Holdings
El Salvador – one of the smallest and most densely populated countries in Central America – may eventually become one of the wealthiest countries in the world because of its Bitcoin holdings.
For context, the country became the world’s first nation to accept Bitcoin as legal tender in September 2021. Then, on November 16, 2022, El Salvador’s President Nayib Bukele announced that the government would start purchasing 1 BTC per day.
Although President Bukele’s decision was met with criticism, it has been reported that the Bitcoin held by the government of El Salvador – which consists of over 2,000 BTC – is now valued at more than $150 million.
BREAKING NEWS: Emir of Qatar and President of El Salvador announce “No more easy buying or dips for laggards #Bitcoin full send to 70K” pic.twitter.com/UIvDUVow6m
— RŌNIN (@ronin21btc) March 3, 2024
While impressive, President Bukele has also stated that he has no plans to sell the country’s vast Bitcoin holdings. As the Bitcoin halving event approaches, El Salvador could see even more gains if the price of BTC continues to increase.
El Salvador Could Become one of the Wealthiest Countries
Given this, industry experts are predicting that El Salvador may eventually become one of the wealthiest countries in the world.
Silicon Valley-based Venture Capitalist Tim Draper recently stated on the Web3 Deep Dive podcast that El Salvador is taking off as an innovative country, noting that the region may soon be one of the most attractive places in the world to live.
“Within maybe 30 or 40 years, El Salvador will have gone from the poorest, most crime ridden country, to maybe one of the richest, most innovative countries in the world, just in that period of time,” said Draper. “And this is just because they embraced Bitcoin.”
Draper further pointed out that if Bitcoin reaches $100,000 El Salvador may be able to pay off loans owed to the International Monetary Fund (IMF).
Echoing this, Alexander Mamasidikov, Founder and CEO of CrossFi – a platform focused on bridging traditional banking with blockchain – told Cryptonews that he believes El Salvador will soon be financially independent.
“This will allow the country to focus entirely on its internal tasks, which is most important in our modern world,” said Mamasidikov. “Recognizing Bitcoin as an official currency has allowed the government to completely change the financial model and go its own way.”
