El Salvador's Bitcoin (BTC) Reserve Grows by Over $357 Million Since Its 2021 Investment

In 2021, when El Salvador chose to be the first country in the world to use bitcoin as legal tender, it raised a lot of eyebrows.

El Salvador has managed to gain over $357 million from a just $287 million investment in Bitcoin, more than doubling its initial investment within four years.

The International Monetary Fund (IMF) issued a loan of $1.4 billion to the Central American country with a strict precondition that it would reduce its BTC purchases. However, the Salvadoran government’s Bitcoin office data shows that it continues to purchase almost one BTC daily, reaching over 6100 BTC.

The substantial increase in the value of El Salvador’s Bitcoin reserve coincides with the BTC price rally approaching its all-time high of $108k.

President Nayib Bukele shared on X that the country’s Bitcoin portfolio boasts a 124% growth over its total investment. With this surge, the total value of its Bitcoin portfolio has now gone up to $644 million.

El Salvador's Unrealised Gains from Bitcoin Grow to $357 Million

According to the latest figures from the Salvadoran government, the country's Bitcoin (BTC) reserve has experienced a significant increase, generating unrealised gains of $357 million.

This gain comes after President Nayib Bukele decided to invest in the flagship cryptocurrency in 2021, making El Salvador the first nation to adopt Bitcoin as legal tender.

Earlier this year, the IMF granted a loan of $1.4 billion to the Central American country, imposing a strict condition: El Salvador would have to decrease its BTC purchases.

Despite this warning, the Salvadoran government has continued to experiment with Bitcoin initiatives. It recently signed an agreement with Paraguay to enhance oversight of digital asset service providers.

The deal aims to strengthen cooperation in supervising cryptocurrency-related activities. Moreover, the country's Congress approved a bill to regulate bitcoin in order to promote financial inclusion in the country.

However, despite these efforts, the use of BTC in real-world transactions remains minimal, with estimates indicating less than 10% utilization despite the policy push.

This limited adoption is attributed to a lack of digital literacy among the country's populace, further hindering the broader use of Bitcoin in El Salvador.