El Salvador’s Bitcoin holdings surge to $400 million, signaling a commitment to digital currency. Learn about the strategic shift to cold storage and the nation’s pro-Bitcoin ecosystem.
In 2021, El Salvador became the first country to declare Bitcoin legal tender. It’s now in the news again as President Nayib Bukele announced that the country now holds 5,700 BTC worth roughly $400 million. This development demonstrates El Salvador's dedication to nurturing an environment for Bitcoin and protecting its financial independence.
In March 2024, El Salvador transferred a substantial portion of its Bitcoin holdings into cold storage. This strategic decision ensures improved security and sovereignty over its assets. Exceeding previous estimates from mid-March, the country's secure vault currently holds 5,700 Bitcoins. Bukele's transparency in revealing the wallet address further strengthens confidence in El Salvador's dedication to cryptocurrency.
Bitcoin accumulation in El Salvador extends beyond its traditional practice of buying one Bitcoin daily. The nation has also obtained tokens by selling passports, converting currency, and engaging in mining operations. Moreover, El Salvador has abolished income tax on foreign funds, enhancing its appeal to Bitcoin supporters and international investors.
Support for Bitcoin in El Salvador goes beyond just holding the cryptocurrency. The country has passed a law that offers citizenship to Bitcoin investors who contribute to the government. El Salvador hopes to draw international attention and stimulate economic development by presenting itself as a Bitcoin-friendly center. President Bukele's plan involves using Bitcoin and embracing AI to possibly increase the country's GDP by ten times by 2029.
El Salvador's dedication to digital currency is evident in its move towards cold storage and the increasing amount of Bitcoin it holds. This small Central American nation is attracting global attention as it continues to have a significant impact on the cryptocurrency scene.
