SAN SALVADOR, El Salvador (AP) — as Bitcoin reaching historic highs, exceeded $100,000 for the first time El Salvador's President Nayib Boucle on Thursday spoke triumphantly about his big bet on cryptocurrencies.
Bitcoin adoption — this is Legal tender in Central American countries from 2021 —Although by no means exactly aligned with the president's enthusiasm, reported government investments now stand at more than $600 million.
For Bitcoin Strongly rallied since Donald Trump's election victory Last month, it topped the $100,000 mark on Wednesday night, just hours after the president-elect announced his intention to nominate him. Cryptocurrency advocate Paul Atkins will be the next chairman of the Securities and Exchange Commission.
Just two years ago, Bitcoin's floating value was below $17,000. Bitcoin fell below $100,000 by Thursday afternoon and remained just above $99,000 by 3 p.m. ET.
Bukele on Thursday blamed a beleaguered political opposition for causing many Salvadorans to miss out on the jackpot.
there were Street protests when Congress makes Bitcoin legal tender But that move was not the only motivation for the protesters.
The small Central American nation has long used the dollar as its currency, but Bukele said Bitcoin could bring new benefits to Salvadorans who don't have bank accounts in El Salvador, cutting off remittance services for Salvadorans abroad to send money home. He promised to provide an opportunity. The government offered $30 in Bitcoin to anyone who registered for a digital wallet.
Many people did so, quickly converting their crypto into cash.
Bukele wrote on Facebook: “Not only did the opposition make big mistakes about Bitcoin, but unlike other issues (where they also made mistakes), this time the opposition made big mistakes that affected a lot of people. It is important to emphasize what we have given.”
Bukele drew an “impressive” comment from Elon Musk on social media platforms Thursday.
Carlos Acevedo, the former head of El Salvador's central bank, said Thursday that profits are being made but will remain unrealized until the government sells its Bitcoin. That said, he acknowledged that the Bukele administration did a good job with the Bitcoin move, especially in light of President Trump's election.
Acevedo said “market optimism that the Trump administration will be friendlier to the markets, especially Bitcoin,” explains the sustained rally over the past month.
However, he said the volatility of cryptocurrencies is a persistent risk.
“While the average Salvadoran does not use Bitcoin, there are clearly some Salvadorans with financial means who have already invested in Bitcoin, but that is a small group,” Acevedo said. he said.
Esteban Escamilla, who works at a clothing store in Santa Tecla, a suburb of the capital San Salvador, said he cashed out the original $30 in Bitcoin offered in 2021.
“I don't use Bitcoin because I don't have it (money) to invest or speculate, but I know Bitcoin has gone up a lot,” he said, adding that if he had Bitcoin, he would have more money now. I admitted that there would have been. Bitcoin.
Josefa Torres, 45, said while shopping for groceries that she didn't even have any Bitcoin. “I took that money out and used it for household expenses,” she said.
At the end of a meeting between the International Monetary Fund and the government of El Salvador in August, the IMF issued a statement addressing the country's Bitcoin holdings.
“While many of the risks have not yet materialized, there is a consensus that further efforts are needed to increase transparency and reduce potential fiscal and financial stability risks from Bitcoin projects,” the IMF said. said.
