Although President Nayib Bukulele made the statement in June 2021, El Salvador officially recognised Bitcoin as a legal tender on September 7, 2021. The President stated that the nation had purchased its first 200 bitcoins and that they intended to purchase “a lot more” just before the “Bitcoin Law” went into effect. El Salvador has purchased 11 bitcoins since September 2021, for a total of 2,381 bitcoins, according to estimates. On June 30, 2022, El Salvador made the final purchase in bitcoin, paying an average of $19,000 for 80 coins.
El Salvador has spent a whopping $375 million on Bitcoin, making it a legit BTC whale.
He has taken action on multiple occasions to defend the legal tender decision, either by repurchasing bonds to demonstrate that the nation’s finances are sound or by simply purchasing additional Bitcoin to demonstrate to doubters that they still stand by their choice to make Bitcoin a legal tender.
The Bitcoin Magazine published an opinion piece written by President Bukele in which he took a shot at the critics of El Salvador’s Bitcoin move. He claimed that, despite all of their dire predictions, his country is doing quite well and that, “If El Salvador succeeds, many countries will follow.”
El Salvador’s vocal critics were nothing more than “elites of the world,” who appeared to be “afraid” and solely pursued their interests. He cited a number of pieces written by his critics in which they claimed that El Salvador’s “bitcoin gamble” will have ruined the country’s economy, that they were irrevocably approaching default, that their economy will crumble, and that the government is insolvent. The country has been repeatedly warned by the International Monetary Fund (IMF) of a financial disaster if the decision to declare Bitcoin as a legal tender is not reversed.
He pointed out that because their projections regarding the Salvadoran economy were wrong, no one is currently producing articles on the subject.
The president also criticised the so-called “experts” who claimed that El Salvador’s economy was deteriorating as a result of a $50 million decline in their Bitcoin holdings. He defended it by arguing that it demonstrates trust in their choice that the nation did not sell its bitcoin holdings in the midst of market upheaval.
El Salvador, according to Bukulele, produced $28 billion in goods and services despite being a developing/poor nation. Promoting the idea that a $50 million loss would irreparably harm or even collapse the nation’s economy is completely ‘stupid,’ according to the President.
He also asserted that without raising taxes, the country’s GDP increased by 10.3%, exports increased by 17%, employment increased by 7%, tourism income increased by 52%, new businesses expanded by 12%, energy generation increased by 19%, energy exports increased by 3.291%, and internal revenue increased by 37% in 2021.