FameEX Hot Topics | El Salvador to Retain Its Bitcoin Holdings, President Bukele Affirms '1 BTC Will Always Equal 1 BTC'

Nayib Bukele, the President of El Salvador, recently reiterated his nation's stance on not selling its Bitcoin holdings, asserting the value of Bitcoin with the phrase, "At the end 1 BTC = 1 BTC." This statement comes amidst a significant increase in Bitcoin's market price, which, according to Bukele, could yield a profit of over 40% if sold. However, El Salvador, which made Bitcoin legal tender in September 2021, alongside the U.S. dollar, plans to hold onto its investment.

Bukele highlighted the contrast between the criticism El Salvador faced when Bitcoin's price was low and the current silence from critics now that the price has surged. He underscored the lack of commentary from those who previously claimed El Salvador suffered losses from its Bitcoin investment. Bukele's administration, which has acquired Bitcoin primarily through its citizenship program offering, firmly believes in the enduring value of Bitcoin, irrespective of market fluctuations.

The President's resolve in Bitcoin has garnered praise from various quarters. However, critics like Peter Schiff remain skeptical, suggesting that profits are only real once realized through sales, to which Bukele sharply responded, indicating his indifference to such criticisms.

Furthermore, under Bukele's leadership, which has been renewed following his reelection, El Salvador continues to embrace Bitcoin as legal tender. The government is also planning to launch Bitcoin-backed bonds in early 2024 and proceed with the development of Bitcoin City, a proposed tax-free zone aimed at crypto investors. This ambitious project includes offering citizenship to those who invest a significant amount in cryptocurrency.

Despite the International Monetary Fund's (IMF) repeated advisories against the country's adoption of Bitcoin as legal tender, citing potential risks and costs, El Salvador remains steadfast in its commitment to Bitcoin. The IMF has issued several warnings since November 2021, with a detailed report in February 2023 reinforcing their concerns. Yet, El Salvador's determination to integrate Bitcoin into its financial system and economy remains unshaken, illustrating the country's pioneering role in the global cryptocurrency landscape.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.