El Salvador had made history when it became the first sovereign nation to make bitcoin a legal tender. The September 7 official adoption had sent the entire space into jubilation as it had marked a significant stride for BTC. Barely a teenager, the digital asset had grown from being a relativity unknown internet coin to become the official legal tender of a country.
Since then, El Salvador has made strides when it comes to bitcoin. The country had gradually increased its stake in BTC after its first purchase on what has come to be known as “Bitcoin Day” in the country. Adoption of the government-issued bitcoin wallet, Chivo, had grown rapidly as residents of the country took advantage of the $30 sign-up bonus.
Related Reading | Plummeting Bitcoin Exchange Reserves Show Investors Are Not Ready To Sell
It would seem that the adoption was moving at a more rapid pace than expected. Only two months after the law went into effect, President Nayib Bukele has made a revelation regarding the number of citizens who are using bitcoin.
BTC Wallets Being Used More Than Banks
President Nayib Bukele had provided updates at various stages after the adoption on how many people were using Chivo. The number had hit over one million users in the first ten days following September 7th. Subsequent weeks had seen even more adoption by residents who were beginning to accept the cryptocurrency.
BTC price drops down to low $60,000s | Source: BTCUSD on TradingView.com
Bitcoin was introduced as a way to make sure that residents of El Salvador, most of them largely unbanked, would have access to services that they would otherwise be locked out of. It would seem El Salvadorians have taken full advantage of this.
Bukele took to Twitter to announce that as of November 15th, there were more people using bitcoin wallets than those holding bank accounts.
There is one country on Earth, where there are more people using #Bitcoin wallets than bank accounts.
Prolly nothing. https://t.co/bZb4M6XZZZ
— Nayib Bukele (@nayibbukele) November 15, 2021
The tweet was made in response to one from Bitcoin.com showing vendors accepting BTC for street food. Citizens of the country still use US dollars in addition to bitcoin but the cryptocurrency looks to be catching on even in rural areas.
Betting On Bitcoin
El Salvador’s support for bitcoin had not ended just at making it legal tender. The country had also bought the digital asset to show its commitment to its long-term growth. The first-ever purchase had been 200 BTC bought on the day the law went into effect. A promise was made to purchase more BTC, which has been done in the two months since.
Related Reading | Crypto Analyst Says Bitcoin Won’t Hit $100,000 This Year, When Will It Hit?
The latest iteration of the country purchasing BTC was two weeks ago when it had purchased 420 BTC for $25 million. Bitcoin had dipped during this period and the country had taken advantage of the situation to add to its bitcoin stash, bringing the total of its holdings to 1,120 BTC.
The world is still looking to El Salvador to see how using a cryptocurrency as a legal tender will play out in the long term. For now, the nation seems to be doing just fine and adapting to the new normal of having a digital currency as a legal tender.
Featured image from Permission.io, chart from TradingView.com