- Bulgaria’s Bitcoin sale in 2018 and its missed financial opportunity.
- Potential $25 billion more in today’s value.
- No substantial regulatory change post-sale.
Bulgaria’s government reportedly sold 213,500 Bitcoin in 2018, following their seizure in 2017.
The Bitcoin Sale
The Bulgarian government seized 213,500 Bitcoin in 2017. Their reported sale in 2018 amounted to $3.5 billion, far below today’s potential of $25 billion, which could have offset significant public debt.
No Bulgarian government leaders or blockchain figures have publicly commented on the sale. The only involved parties were state organs like law enforcement and financial management divisions managing asset forfeiture.
Impact on Markets and Policies
The Bitcoin sale had minimal immediate impact on markets, and Bulgaria did not allocate funds to institutions due to this event. The sale did not visibly affect DeFi or other cryptocurrencies.
No major political or regulatory changes occurred post-sale, maintaining a cautious view on cryptocurrencies without bans or significant policy shifts. The Bulgarian National Bank reiterated risks but left policies unchanged. This IMF report on Bulgaria’s economic performance and outlook discusses the broader economic context.
Bitcoin’s volatility makes it difficult to use it as a stable reserve. – Alex Obchakevich, Founder, Obchakevich Research
Conclusion
Bulgaria’s missed financial opportunity highlights the volatile nature of state-held cryptocurrencies. With a lack of policy impact, future governmental approaches to digital assets may reconsider the timing and value implications of asset liquidation. For a deeper understanding of Bulgaria’s fiscal policies, refer to DGPCU 2018.
