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El Salvador Keeps Stacking Up on Bitcoin: Thousands of BTC Added to National Coffers

Staying loyal to Bitcoin: El Salvador bolsters its strategic reserves

El Salvador has taken a monumental step in bolstering its national treasury through cryptocurrency, with President Nayib Bukele announcing a significant transfer of Bitcoin this week. The Central American nation has relocated over $400 million worth of Bitcoin, precisely 5,689.68 BTC, into a cold storage wallet, a move that nearly doubles its previously acknowledged holdings. This strategic enhancement of El Salvador's Bitcoin reserves was shared by President Bukele on X, where he revealed: 

"We've decided to transfer a big chunk of our #Bitcoin to a cold wallet, and store that cold wallet in a physical vault within our national territory."

This initiative not only underscores El Salvador's commitment to integrating Bitcoin into its financial architecture but also positions the country's treasury among the most substantial in the world concerning cryptocurrency assets. Bukele's posthumously dubbed this accumulation as "our first #Bitcoin piggy bank," reflecting both the pioneering spirit and the informal approach the nation has taken towards cryptocurrency adoption. The transfer into cold storage—aimed at enhancing security and sovereignty over the nation's Bitcoin assets.

Transparency and strategy: El Salvador's Bitcoin treasury growth

President Bukele's candid disclosure on X, showcasing a photo of the wallet containing 5,689.68 BTC valued at $411 million, marks a departure from previous updates that were limited to social media announcements without concrete evidence.

Nayib Bukele (@nayibbukele):

“We've decided to transfer a big chunk of our #Bitcoin to a cold wallet, and store that cold wallet in a physical vault within our national territory.

You can call it our first #Bitcoin piggy bank 🇸🇻

It's not much, but it's honest work 😂” pic.twitter.com/dqzedykxT1


 

The country's innovative methods for increasing its Bitcoin reserves include selling passports, engaging in currency conversions for businesses, cryptocurrency mining, and leveraging government services. This diversification in acquisition strategies not only showcases El Salvador's commitment to integrating Bitcoin into its economic framework but also its clever use of state resources to bolster its position in the cryptocurrency market.

Bukele's revelation ties the national holdings to a specific address for the first time, offering a new level of transparency and solidifying El Salvador's status as a trailblazer in governmental cryptocurrency adoption. Since its initial purchase in September 2021, when Bitcoin was valued at around $52,000, El Salvador has witnessed the asset's value fluctuate, recently trading above $73,000.