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El Salvador adds $15 million in BTC and now holds over 2,300 tokens

  • The Central American nation now holds 2,301 BTC
  • Despite recent bitcoin additions, its use as legal tender remains unpopular among Salvadorans

El Salvador President Nayib Bukele has remained resolute and stuck to his grand Bitcoin Adoption Master Plan. The Central American nation boosted its bitcoin position earlier this week after another big buy during the recent market slump.

The second BTC purchase this year

President Bukele tweeted the news Monday, confirming that El Salvador added 500 BTC for $15.37 million, averaging $30,744. Notably, this was a more enticing price level than the $36,585 median price for the 410 bitcoins the country added in January.

“El Salvador just bought the dip! 500 coins at an average USD price of ~$30,744″ This was announced by President Bukele.

The latest addition brings El Salvador’s total Bitcoin reserves to 2,301 BTC.

Bukele has previously insisted that Bitcoin adoption will benefit the country’s economic and political future, citing the country’s other reliance on the US dollar. Additionally, its decision to buy into a declining market is bullish sentiment for the top crypto token.

Chivo purses abandoned

Although President Bukele a Bitcoin-fan, his enthusiasm is not as synonymous with the citizens of his country.

It’s been more than half a dozen months since El Salvador’s BTC era, but there are indications that most citizens haven’t really picked it up. This is despite government efforts to encourage the asset’s use in settling payments for goods and services.

Chivo, a government-managed wallet set up to allow the use of cryptocurrencies was launched with the launch of BTC and gave users who download the app a $30 incentive.

It was supposed to power the crypto option, but according to a survey by the US nonprofit organization National Bureau of Economic Research (NBER), most users abandoned the wallets after depleting the reward.

According to a report released last month by NBER, the organization confirmed that only 20% of citizens still use Chivo, most of whom are educated and banked. As such, the asset class is already failing in usefulness as it should serve the unbanked – this group of Salvadorans have primarily chosen to stick with using cash payments.

While El Salvador has received a lot of criticism for its adoption of bitcoin, particularly from global financial bodies like the IMF, a bitcoin legal tender is turning into an attractive idea for other countries. The Central African Republic (CAR) recently approved the legal use of bitcoin for transactions alongside the CFA franc.

Source: Crypto News Deutsch

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