El Salvador stunned the world in 2021 by becoming the first country to make Bitcoin legal tender. This decision exposed President Nayib Bukele to criticism from economists, global institutions, and political opponents. Despite the backlash, Bukele continues to double down on making his country a beacon for Bitcoin adoption.
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The Central American country has amassed a sovereign Bitcoin reserve of around 6,000 BTC through direct buys, mining revenue, and its residency program. To boost transparency around these holdings, the government recently launched an on-chain tracker documenting the wallet flows.
Opting for Bitcoin Transparency
El Salvador, in conjunction with Mempool, has launched an on-chain tracker showing real-time visibility into the nation’s Bitcoin holdings. The details show El Salvador is currently holding 5,749 BTC, valued at around $362.8 million based on the price at the time of writing.
The most recent transactions consist of daily purchases of 1 BTC, in line with Bukele’s pledge to buy one Bitcoin every day from November 18, 2022. According to nayibtracker.com, El Salvador’s dollar cost average buy price is $43,098 per coin, equating to an unrealized profit of $114.8 million.
The recent upturn in Bitcoin’s price in the run-up to the approval of US spot Bitcoin ETFs pushed El Salvador’s Bitcoin investment into profitable territory. This was met with an impassioned celebration from Bukele, who clapped back at critics who had slammed his radical approach to government.
Bukele’s unorthodox governing style has been highly polarizing, particularly regarding the country’s crackdown on suspected gang members and what this means for human rights in El Salvador. However, Bukele has also earned plaudits from those who believe other governments worldwide should take cues from his playbook, especially on Bitcoin and publicly tracking holdings.
El Salvador Leading the Way
In support of El Salvador’s move to publicly track Bitcoin holdings, the Lightning Network X account stated, “One day residents of every country will demand full financial transparency of their governments.”
With billions being sent to Ukraine and Israel, when many are suffering economic hardship at home, the issue of government overspending and the lack of transparency around public spending has become a political hot potato.
Commenting on this, Being Libertarian warned that things will not improve domestically until the funding of conflicts stops. Being Libertarian called for an audit of the Fed and for followers to support politicians who “get this.”
Meanwhile, in response to the arrest of El Salvdaor’s presidential commissioner for strategic projects over bribery allegations, Bukele declared that his entire executive branch would be investigated for corruption. Bukele stated, “I want to be remembered as the President who didn’t steal and didn’t let anyone else steal either.”
On the Flipside
- Bitcoin adoption among everyday Salvadorians is low, mainly due to fear of losing value on downside moves.
- El Salvador’s unrealized BTC gains can potentially disappear overnight.
- The exception stock trading performance of some US politicians has become a meme at this point.
Why This Matters
By voluntarily exposing its Bitcoin holdings to public scrutiny, El Salvador is pioneering a new frontier of financial transparency and accountability that is lacking in governments worldwide. This sets a refreshing precedent in an era marred by widespread financial corruption.
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