There is again noise around El Salvador and his illustrious Bitcoin (BTC) policy. President Nayib Bukele played openly this week with the suggestion that he could make a new big purchase. But how seriously do we have to take this, and how does El Salvador actually like in 2025 with his bitcoin experiment?
Bukele hint on new Bitcoin purchase
Speculations about new purchases flared up again after the President of El Salvador fueled the expectations of gamblers on the Kalshi, a platform where the results of real events are traded.
There it is speculation about when the Bitcoin reserves of El Salvador will reach the magic border of one billion dollars. Initially, that chance was estimated low, at only 25 percent.
Bukele’s reaction, however, was telling: “I could now do the funniest.” That single sentence was seen by many as a clear hint to a possible new purchase.
Since then, the estimated chance that El Salvador has lifted its BTC reserves to the billion boundary in 2025, rose to more than 37 percent.
El Salvador’s Bitcoin policy over the years
El Salvador wrote history in 2021 by being the first country in the world to make Bitcoin legitimate payment method and actively buy. Citizens received a start bonus in BTC and companies were obliged to accept payments in the digital currency. From November 2022 the country bought 1 bitcoin per day.
In the following years, the experiment had peaks and troughs. While the daily use of BTC remained low by residents, the price increases over the years yielded a huge profit for the state.
Ultimately, under pressure from the International Monetary Fund (IMF), a global organization that offers financial support, Bukele had to do water. Companies no longer had to accept Bitcoin, taxes could no longer be paid in BTC and from 2025 the currency lost its status as a legal means of payment.
The country currently owns 6,246 BTC. Based on a rate of $ 112,000, this amounts to a total value of nearly $ 700 million. The Central American country is therefore on a hefty profit. The average purchase price is an estimated $ 46,471. That means a total profit of $ 510 million at the current market value.
El Salvador remains a small player between superpowers
Despite the daring strategy of El Salvador, the size of his reserves remains modest compared to the real superpowers. According to on-chain data, the United States would have around 198,000 in BTC, all from seizures.
However, there are doubts about the figures. According to some sources, only 29,000 BTC is actually present in the state treasury. Not all seized coins are definitively owned by the state. Depending on the outcome of different lawsuits, part can still be returned to the original owners.
The contrast with companies is also huge. There are now more than 150 listed companies that have Bitcoin. It concerns a total of around 1.27 million BTC, accounting for more than 6.3 percent of the total circulating stock.
Source: https://newsbit.nl/slaat-bitcoin-land-el-salvador-weer-toe-president-hint-naar-grote-aankoop/
