El Salvador’s Ongoing Bitcoin Acquisition Stays Strong Despite Market Decline

El Salvador’s Ongoing Bitcoin Acquisitions Amid Market Volatility

Bitcoin has faced a recent downturn in its price due to increased selling pressure from Mt. Gox repayments and a challenging economic climate. Nevertheless, El Salvador remains steadfast in its commitment to acquiring one Bitcoin (BTC) daily.

The government of El Salvador is contemplating the establishment of a private investment bank to facilitate transactions involving Bitcoin and the US dollar. This move underscores the country’s dedication to integrating cryptocurrencies into its financial ecosystem.

Since mid-March, a cold wallet controlled by the El Salvador government has steadily accumulated 1 BTC. President Nayib Bukele initiated this accumulation by transferring the country’s BTC holdings to the cold wallet and making the address public. At the time of the transfer, El Salvador held approximately 5,600 BTC, valued at over $400 million, with Bukele referring to the wallet as the country’s “first Bitcoin piggy bank.”

This disclosure marked the first instance of the President publicly sharing El Salvador’s Bitcoin wallet address. Previously, updates on new Bitcoin purchases were only communicated through social media channels.

El Salvador’s daily Bitcoin acquisitions are part of President Bukele’s strategic approach to purchasing cryptocurrencies. The President announced in 2022 that the country would commence buying one Bitcoin per day starting on November 18, 2022, following the groundbreaking decision in September 2021 to adopt Bitcoin as legal tender.

President Bukele emphasized that El Salvador’s Bitcoin purchases are not mere acquisitions but are also facilitated through passport sales, currency conversions, mining activities, and various government services. As of May 15, 2024, El Salvador had mined 473.5 Bitcoin using the geothermal power generated by the Tecapa volcano.

In a recent development, El Salvador unveiled plans to enhance Bitcoin integration within its banking system by proposing the creation of a private investment bank that would support Bitcoin and US dollar transactions. This initiative demonstrates the country’s commitment to embracing cryptocurrencies and fostering innovation in its financial infrastructure.