El Salvador’s President Nayib Bukele revealed that the country has gained about $265 million after adopting Bitcoin as a reserve asset and legal tender.

Bukele shared that El Salvador has invested $135 million in Bitcoin, which has since grown to $400 million in the public wallet alone. According to him, Salvadorans who embraced Bitcoin have also seen substantial gains due to the asset’s appreciation this year.

He stated:

“El Salvador invested $135 million. Now, we have $400 million in Bitcoin in the public wallet alone. We have done well as a government. Salvadorans who used and saved it have done very well for obvious reasons, such as the price increase.”

Indeed, the country’s Bitcoin holdings have yielded over a 38% profit, driven by strategic purchases during market downturns. According to Nayibtracker data, El Salvador holds 5,856 BTC, with an unrealized profit exceeding $50 million.

Beyond financial gains, Bitcoin adoption has enhanced financial inclusion for many Salvadorans. Bukele noted:

“Many Salvadorans use it; The majority of large businesses in the country have it. You can go to a McDonald’s, a supermarket, or a hotel and pay with Bitcoin.”

No drawbacks

Bukele emphasized that adopting Bitcoin has only resulted in positives for the country, while acknowledging its growing importance in the global financial system.

According to him:

“[Bitcoin] hasn’t resulted in anything negative. On the contrary, it gave us branding, it brought us investments, it brought us tourism.”

Bukele pointed out the country’s first-mover advantage, especially as Wall Street increases exposure to Bitcoin. He noted that major financial institutions’ involvement in Bitcoin, which was unthinkable three years ago, emphasizes its growing impact.

Bukele also mentioned that some countries are now holding Bitcoin reserves or investing in Bitcoin and mining, adding that BTC is becoming a topic of debate in the US presidential campaign.

He stated:

“Right now, you have the largest funds in the world, literally the largest funds in the world. BlackRock has the largest Bitcoin ETF.”

Despite the progress, Bukele admitted that Bitcoin adoption in El Salvador hasn’t reached his desired level. However, he remains optimistic about its future potential.

Bukele stated:

“I’m not going to say it’s the currency of the future, but there’s a lot of future in that currency. I’m not the only one saying it.”

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El Salvador’s National Bitcoin Office (ONBTC) has launched a Bitcoin training and certification program for 80,000 public servants.

In an Aug. 20 statement, ONBTC confirmed that Bitcoin education is now a vital component of a governance initiative designed for public sector employees. This program is part of the Higher School of Innovation in Public Administration (ESIAP), established by President Nayib Bukele in 2021 to elevate governance standards.

The program features nine training modules covering Bitcoin, Blockchain, Cybersecurity, and Artificial Intelligence, among others. Upon completion, participants will receive certification in these areas.

Stacy Herbert, Director of the Bitcoin Office, hinted at a larger announcement on the horizon, noting that this program is just the beginning. She added:

“These education projects are very low time preference commitments to the long term success of El Salvador and its bitcoin (& tech) policy.”

Meanwhile, these trainings are part of El Salvador’s broader effort to advance Bitcoin education nationwide. Since adopting Bitcoin as a legal tender in 2021, the country has introduced three other crypto-focused educational initiatives, including Cuboplus, My First Bitcoin, and Node Nation, which are now part of the public school curriculum.

El Salvador Bitcoin

This move confirms that El Salvador remains steadfast in its Bitcoin strategy despite initially drawing criticism and doubt from international observers.

Indeed, the strategy appears to be finally paying off, as the International Monetary Fund (IMF) recently acknowledged that its anticipated risks of El Salvador adopting Bitcoin as a legal tender have not materialized.

Further, El Salvador’s Bitcoin holdings have yielded a profit of over 35%, largely due to strategic acquisitions made during market downturns. According to Nayibtracker data, the country currently holds 5,848 Bitcoin at an unrealized profit of more than $47 million.

In addition, President Bukele recently announced a $1.6 billion investment by Turkish firm Yilport Holdings to upgrade two ports in the country, one of which will host the proposed Bitcoin City. The city, envisioned during the 2021 Bitcoin adoption, is expected to be a tax haven powered by geothermal energy for Bitcoin mining and will attract crypto enthusiasts worldwide.

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El Salvador has reportedly suggested using digital assets like Bitcoin for trade with Russia to circumvent the extensive economic sanctions imposed on Moscow.

Alexander Ilyukhin, Russia’s first secretary at the Nicaraguan embassy and head of its El Salvador office, revealed this in an interview with Russian state media outlet Izvestia.

Bitcoin transactions

The proposed use of crypto aims to address the impact of sanctions and logistical challenges on conventional trade channels. While Russian exports to El Salvador have remained relatively stable, imports have significantly declined.

The implementation of a crypto-based trade mechanism could offer a practical solution to these financial barriers. According to Ilyukhin:

“Calculating transactions is challenging because El Salvador’s official currency is the U.S. dollar. As an alternative, El Salvador suggests using cryptocurrency for trade operations.”

El Salvador became the first nation to adopt Bitcoin as legal tender in 2021 and has firmly positioned itself as a pro-crypto country. This is evident from its daily Bitcoin purchases and several regulations supporting the sector.

However, Ilyukhin mentioned that Russia might find it difficult because crypto use was banned as a legal tender in early 2021. He noted:

“Bitcoin is not widespread in our country, so we are looking for other ways to strengthen trade.”

Despite this, experts believe the proposal could address trade barriers caused by Western sanctions. Due to increased caution among local banks, these sanctions have disrupted Russia’s trade with major partners, including China.

Russia’s recent pro-crypto moves

Recently, the Russian State Duma passed a bill legalizing Bitcoin mining and permitting the use of crypto for international trade.

Russian lawmaker Anton Gorelkin, Deputy Chairman of the State Duma’s Committee on Information Policy, emphasized the bill’s significance in a Telegram post. He highlighted recent updates, saying:

“We managed to cancel the provision banning the organization of cryptocurrency circulation, which in its current version caused quite serious concerns among industry representatives. The ban on advertising digital currencies remains, but will be included in the corresponding amendments to the Federal Law ‘On Advertising.’”