El Salvador Increases Its Bitcoin Holdings! The Central American country made a new purchase of Bitcoin, which now allows it to have 1,120 bitcoins on its balances, as reported by the nation’s president, Nayib Bukele, who took advantage of a drop to buy the cryptocurrency.
As part of its initiatives linked to Bitcoin, which is legal tender in the country, El Salvador is making purchases of the cryptocurrency to add to its balance sheets, in order to also guarantee the convertibility of Bitcoin to dollars and vice versa for citizens , through Chivo ATMs and physical points, as well as through the digital wallet with more than 2.2 million users, Chivo.
After buying its first 700 bitcoins, the president of the nation, Nayib Bukele, reported that El Salvador again took advantage of a fall to buy more Bitcoin, specifically, 420 new bitcoins, which now allow the country to have the amount of 1,120 bitcoins.
How is El Salvador making a profit from Bitcoin? Bukele explained on Twitter:
“How do we make profit if 1 BTC = 1 BTC? We have a trust fund accounted for in USD, but the trust is funded by both USD and BTC. When the BTC part appreciates compared to the accounting currency (USD), we can withdraw some USD and leave the trust with the same total”.
Days ago, El Salvador launched the first commercial airline that accepts Bitcoin as a payment method, while with its surplus of Bitcoin, a veterinary hospital will be built in the country. The latest limitations imposed on the digital wallet, Chivo, were flagged as illegal, while the same wallet is being adopted by more than 300 businesses linked to tourism in El Salvador.