On Thursday (17 November 2022), Nayib Bukele, the president of central American nation El Salvador, announced his country’s new Bitcoin acquisition strategy.
As you may know, on 5 June 2021, Zap Solutions (a Bitcoin payments startup that uses the Lightning Network) Founder and CEO Jack Mallers announced at Miami’s Bitcoin 2021 conference that El Salvador’s government wanted to pass legislation to make Bitcoin legal tender (alongside the U.S. dollar).
During his talk, an emotional Mallers presented a recorded video message from President Bukele and read out a small passage from the proposed bill. Mallers went on to say that his firm would be opening an innovations centre in El Salvador with the help of Blockstream.
On 9 June 2021, this proposed bill got passed by the Legislative Assembly (with 62 out 84 voting in favor of it).
On 6 September 2021, President Bukele announced that his country had bought its first 200 bitcoins and they planned to buy “a lot more”.
Since then, El Salvador has made 11 purchases of Bitcoin, with the country estimated to have bought a total of 2,381 bitcoins. The last $BTC purchase took place on 30 June 2022, when El Salvador bought 80 coins at an average price of $19,000.
On 14 November 2022, President Bukele took to Twitter to explain what the Bitcoin protocol was designed for:
FTX is the opposite of #Bitcoin #Bitcoin ’s protocol was created precisely to prevent Ponzi schemes, bank runs, Enron’s, WorldCom’s, Bernie Madoff’s, Sam Bankman-Fried’s…— Nayib Bukele (@nayibbukele) November 14, 2022
…bailouts and wealth reassignments.
Some understand it, some not yet.
We’re still early.
Well, earlier today, President Bukele announced that starting on 17 November 2022, his country will be adopting a dollar cost averaging (DCA) strategy for buying more Bitcoin: