El Salvador Buys Bitcoin Worth About $25 million

On Wednesday, President Nayib Bukele posted a message on social media announcing that the Salvadoran government has purchased an additional 420 bitcoins as part of the Central American country’s ongoing cryptocurrency initiative.

The recent purchase of bitcoin, which is currently valued at nearly $25 million at current prices, represents the first government purchase of the bitcoin since Sept. 20, when Bukele announced that it had purchased 150 bitcoins, in addition to the 550 bitcoins it had originally bought, marking the first government acquisition of the cryptocurrency.

Following the enactment of a bill this summer, bitcoin became legal money in El Salvador on September 7.

“It had been a long time coming, but it was well worth it. We’ve just just purchased the dip! 420 new bitcoins have been added”

In an English-language message on Twitter, Bukele expressed himself. The cryptocurrency is presently trading at little over $59,000 per bitcoin, according to CoinMarketCap.

Following the adoption of bitcoin as legal cash alongside the U.S. dollar earlier this month, El Salvador became the first government in the world to do so. According to Bukele, this will cut the cost of remittances from Salvadorans working abroad. When it comes to processing money transfers, traditional banks and other financial institutions generally impose exorbitant costs.

According to official statistics, El Salvador’s treasury now has 1,120 bitcoin, which is worth around $66 million. The poor country’s economy is significantly reliant on over $6 billion in remittances sent home each year, which accounts for almost a quarter of gross domestic product, with approximately one fifth of families reliant on the infusions of cash.