El Salvador currently holds 6,150 bitcoin valued at approximately $600 million, according to U.S. investment management firm VanEck. This information was revealed in a report led by Mateo Sigel, the company’s Head of Digital Asset Research, highlighting the nation’s unrealized gains of $150 million.
“This amount represents 1.6% of the country’s GDP, which totals $36 billion,” Sigel stated, underscoring the significance of bitcoin in El Salvador’s economy.
Bitcoin was declared legal tender in El Salvador in September 2021, marking a groundbreaking move in global finance. The government’s strategy has included establishing cryptocurrency ATMs and launching the digital wallet known as Chivo Wallet. While these initiatives aimed to simplify remittance transfers and improve financial inclusion, the government has disclosed limited details regarding its bitcoin acquisitions and strategy execution.
Sigel praised El Salvador’s commitment to bitcoin as a reserve asset, comparing it to a hypothetical scenario in the U.S. If the United States were to adopt a policy like that proposed by Senator Cynthia Lummis, securing one million bitcoins at an average price of $150,000, it could amass reserves worth $150 billion.