El Salvador Celebrates Three Years of Bitcoin as Legal Tender

Exactly three years ago today, on September 7, 2021, El Salvador became the first country in the world to accept Bitcoin as legal tender.

On September 7, 2021, El Salvador made history by becoming the first country in the world to accept Bitcoin as legal tender. This move aimed to provide financial inclusion, improve remittances, and attract financial innovation.

Three years later, El Salvador has continued to purchase Bitcoin almost daily. Under President Nayib Bukele, the country's cumulative Bitcoin portfolio has now reached over $318 million (around 5,865 BTC). With an average buying price of about $43,877 per BTC, and given the current price of around $54,600 in the crypto market, this would mean an ownership cost of over $10,000 per BTC, and a paper profit of over $30 million for the Salvadoran wallet.

Commenting on El Salvador's adoption of Bitcoin, Alex Momot, CEO of Peanut Trade, told Cointelegraph that the experiment has recorded a great success story. According to Momot:

“Despite the risk involved in being the first mover, El Salvador has proven that adopting Bitcoin as a legal tender is possible. The experiment has shown the world how BTC can be used as a tool for financial inclusion and economic growth, especially in countries with a large unbanked population and high inflation rates.”

While El Salvador's adoption of Bitcoin as fiat has had its challenges, especially with the price volatility impacting the country's economy during bear markets, the decision has faced criticism from finance experts. This price uncertainty has also caused other sovereign nations to hesitate in adopting Bitcoin on a large scale.

Since El Salvador made its bold move, only one other country has followed suit. In 2022, the Central African Republic legalized the use of cryptocurrencies to promote financial inclusion and economic growth.

Industry experts believe that the world's biggest countries are unlikely to join the Bitcoin adoption bandwagon due to their relationship with traditional international creditors like the World Bank. Notably, in 2021, the International Monetary Fund tried to get El Salvador to reverse its decision, but the country remained steadfast in its decision to use the digital asset.

Recently, as reported by TheCoinRise, El Salvador unveiled an ambitious Bitcoin City project valued at $1.6 billion. The investment, made by the Turkish company Yilport Holdings, is targeted at two key port developments: the port of Acajutla and the port of La Unión.

While the crypto community awaits other countries to boldly adopt BTC, El Salvador is celebrating its third anniversary of making Bitcoin legal tender.

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