Markets
El Salvador Continues Daily Bitcoin Acquisitions Amid Market Slowdown
Key points to remember
- El Salvador continues its daily purchases of Bitcoin, reinforcing its commitment to the flagship cryptocurrency.
- The country is considering developing a private investment bank to facilitate transactions in Bitcoin and US dollars.
Share this article
Bitcoin’s price has been falling in recent days due to increased selling pressure from Mt. Gox repayments and a gloomy economic outlook. Despite this, El Salvador is still buying one Bitcoin (BTC) per day.
According to data from BitInfoCharts, a cold wallet controlled by the government of El Salvador, has accumulated 1 BTC since mid-March, when Salvadoran President Nayib Bukele transferred the country’s BTC holdings to the cold wallet and published the address.
At the time of the transfer, El Salvador held approximately 5,600 BTC, worth over $400 million. Bukele called the wallet “El Salvador’s first Bitcoin piggy bank.”
The March revelation also marked the first time the president publicly revealed El Salvador’s Bitcoin wallet address. Previously, he only updated information about new Bitcoin purchases on social media.
El Salvador’s constant Bitcoin acquisitions are part of Bukele’s daily buying strategy. The president announced in 2022 that the country would start buying one Bitcoin per day starting November 18, 2022.
The activation of the strategy follows a historic decision taken in September 2021, when El Salvador became the first country to adopt Bitcoin as legal tender.
Previously, Bukele had said that the country was not simply buying BTC but was accumulating it through passport sales, currency conversions, mining operations and other government services.
According to Reuters, as of May 15, 2024, El Salvador 473.5 Bitcoins mined (BTC) using geothermal energy from the Tecapa volcano.
El Salvador recently revealed its plans to advanced bitcoin integration in its banking system. The government has reportedly submitted a reform proposal to create a private investment bank that would allow operations in Bitcoin and the US dollar.
Share this article