El Salvador securely transfers Bitcoin valued at $386m into cold storage
El Salvador’s President Nayib Bukele has announced that a significant portion of the country’s Bitcoin (BTC) assets has been transferred to a secure cold wallet. Under President Bukele’s leadership, El Salvador has revealed that it holds a substantial amount of Bitcoin, totaling 5,689.68 BTC, which is currently valued at over $386 million.
This move to store the Bitcoin in an offline vault within the country’s borders signifies the creation of El Salvador’s official “bitcoin piggy bank,” as President Bukele puts it. The decision not only demonstrates El Salvador’s commitment to utilizing cryptocurrency for economic growth but also addresses security concerns by protecting against potential cyber-attacks.
Since adopting Bitcoin as legal tender in September 2021, despite skepticism from the International Monetary Fund (IMF), El Salvador has been striving to transform its economy. By mainstreaming cryptocurrency, the country aims to reduce overseas remittance fees and provide banking services to the unbanked population, which is a significant issue considering that 70% of Salvadorans are excluded from the traditional financial system.
The transfer of funds to a cold wallet comes as part of ongoing efforts to generate income through Bitcoin. El Salvador has already seen substantial profits from mining and the Bitcoin-powered Freedom Visa passport program, as highlighted by President Bukele in a recent social media exchange with crypto influencer Crypto Rover.
However, despite these ambitious crypto initiatives and the recent surge in Bitcoin value, there is still skepticism among the Salvadoran population regarding the volatility and usability of digital currency in a predominantly cash-based society.
But El Salvador’s vision extends beyond financial gains. The country aims to establish itself as a global tech hub that attracts talent from around the world. This is evident from recent legislative changes and strategic meetings with potential sovereign investors. El Salvador’s policies, such as the elimination of income tax on international investments and money transfers, as well as its Bitcoin-powered passport program, are helping it position itself as a hub for crypto innovation and investment on a global scale.
At its peak on March 14, when it surpassed $73,000, El Salvador’s Bitcoin holdings would have been worth more than $415 million. Currently, the coin is trading just above $68,000, experiencing a slight 0.8% drop in the past 24 hours but still more than 30% higher than its value 30 days ago.
