Leo Schwartz
In November 2021, the president of El Salvador, Nayib Bukeleperformed in front of a crowd of music enthusiasts cryptocurrenciespromising to transform the country into a paradise for Bitcoin. While many of his boldest plans — like a billion-dollar Bitcoin-backed bond and a new crypto city — have yet to come to fruition, Bukele can celebrate one aspect of his plans: the Bitcoin that El Salvador has accumulated. during his term of office, he recently surpassed the 550 million dollarsaccording to an open source tracker.
While other nation-states have yet to venture into the volatile cryptocurrency gamble, another small nation — Bhutan — also saw its bet pay off, with government-associated wallets tracked by the blockchain analytics firm Arkham overtaking 1 billion dollarsrepresenting more than a third of the country’s gross domestic product.
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As digital asset prices soared following the election of a crypto-friendly president, Donald Trumpmany advocates have been pushing governments to acquire Bitcoin as part of their strategic reservessimilar to what is done with oil or gold. Trump himself has flirted with the idea, although he has not outlined steps to implement government purchases.
Even as other governments explore the technology, El Salvador and Bhutan represent two of the few countries that have adopted blockchain as part of their national strategies — and, at least for now, have profited considerably from the bet.
Bitcoin Savings
According to a Salvadoran government website, the Central American nation holds nearly 6,000 Bitcoins. An independent tracker, which indexes the country’s purchases based on Bukele’s frequent tweets, puts the number closer to 6,200.
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Although other governments, such as the USA, China e United Kingdomown more Bitcoin, they do not do so as an economic strategy, but rather by seizing cryptocurrencies through legal operations. El Salvador, in turn, intentionally purchased Bitcoin as part of Bukele’s grand crypto vision, which was first announced at the Miami Bitcoin conference in June 2021.
El Salvador may have seen its national wealth grow through its Bitcoin holdings, but Bukele’s initial plans had a broader scope than just owning cryptocurrencies. Bukele implemented a plan to adopt Bitcoin as legal tender in the country, with the idea that citizens would use crypto, rather than fiat currency, as a form of payment.
The project did not have the expected results, with adoption among the country’s population still being miniscule. However, Bukele still took a “victory lap”, posting “I told you so” on his X (formerly Twitter) account earlier this week.
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The millennial president has had a dramatic tenure at the helm of the country, implementing a rigorous security program to reduce crime while facing external criticism for autocratic behavior from human rights groups. He still enjoys overwhelming support in El Salvador, with his approval rating hovering around 90%. Bukele frequently receives praise from right-wing figures in the US, including Tucker Carlson e Donald Trump Jr.
Bhutan’s adoption of Bitcoin has gone more unnoticed, although its holdings appear to be double that of El Salvador. Bhutan began venturing into Bitcoin mining in April 2019, with the country’s sovereign investment arm, Druk Holding & Investmentsconfirming to a local newspaper that he had joined the sector. Its operations are powered by the country’s hydroelectric resources. Druk’s investments in digital assets through failed platforms, including BlockFi e Celsiuswere revealed in bankruptcy documents, according to Forbes reporting.
In September, Arkham began tracking wallets allegedly associated with Druk, which currently hold more than $1 billion in Bitcoin, as well as small amounts of other cryptocurrencies, including Ethereum.
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This article was originally published on Fortune.com.
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