As announced by President Nayib Boucle, El Salvador has moved a significant portion of its Bitcoin (BTC) assets to secure cold wallets.
The Central American country, under the leadership of newly re-elected President Nayib Bukele, has revealed significant Bitcoin holdings totaling 5,689.68 BTC (currently worth more than $386 million).
In President Bukele's words, this move to an offline vault within the country's borders marks the creation of the country's first official “Bitcoin piggy bank”.
This measure not only demonstrates El Salvador's commitment to leveraging cryptocurrencies for economic growth, but also addresses security concerns by protecting against potential cyber-attacks.
El Salvador has been aiming for an economic revolution since adopting Bitcoin as legal tender in September 2021 amid skepticism from the International Monetary Fund (IMF).
By bringing cryptocurrencies into the mainstream, the country aimed to lower international transfer fees and provide bank accounts to the unbanked, but 70% of El Salvadorans live outside the traditional financial system. This is a serious concern, given that
The move to cold wallets comes amid continued efforts to generate income through Bitcoin, as evidenced by the large profits from mining and the Bitcoin-powered Freedom Visa Passport program, and President Boucle emphasized this in a recent social media interaction with cryptocurrency influencer Crypto Rover. .
Despite ambitious cryptocurrency initiatives and a recent surge in Bitcoin's value, skepticism remains among Salvadoran citizens about the volatility of digital currencies and their ease of use in a cash-based society.
But it's not just about financial gain. El Salvador's grand vision extends to establishing a technology hub that attracts talent from around the world, and this is further evidenced by recent legislative changes and strategic meetings with potential sovereign investors.
El Salvador's policies, such as eliminating income taxes on international investments and remittances and a Bitcoin-powered passport program, are helping to carve out a niche as a global venue for cryptocurrency innovation and investment.
When Bitcoin hit a new all-time high on March 14, exceeding $73,000, El Salvador's holdings would have been worth more than $415 million. The coin is currently trading just above $68,000, down just 0.8% from the past 24 hours, but still more than 30% higher than its level 30 days ago.
