El Salvador, the first nation which made Bitcoin legal tender, continues to aggressively add up on its cryptocurrency reserves. Data from blockchain analytics firm Arkham Intelligence reveals that the Salvadoran government now purchases one Bitcoin daily.
Government Strategy
Since March 16, 2024, these systematic acquisitions have increased the national Bitcoin holdings by 162 units, raising the total to 5,851 BTC. The current market value of these holdings is approximately $356.4 million.
President Nayib Bukele has been the architect of this bold financial strategy and is steadfast in his belief that cryptocurrency will improve the country’s economic autonomy. The initiative began with a rather large transfer of 5,689 BTC into a “Bitcoin piggy bank,” a secure cold storage wallet intended to safeguard the nation’s growing digital assets.
Economic Impact
President Bukele’s strategy has gained skepticism. Proponents view it as a visionary move towards financial sovereignty for a country plagued by economic instability. Critics, however, worry about the potential risks of tying the country’s financial health to the highly volatile cryptocurrency market. In response to calls for transparency, the Salvadoran government has enabled public auditing of its Bitcoin transactions through a mempool space, aiming to demonstrate openness and responsible management of the cryptocurrency investments.
El Salvador Launches Bitcoin Training Session for 80,000 Civil ServantsSustainable Mining Initiatives
El Salvador is also investing in Bitcoin mining using its abundant volcanic geothermal energy. This eco-friendly approach has yielded 474 Bitcoins since 2021, valued at around $29 million. While mining represents a smaller fraction of the overall Bitcoin strategy, it aligns with Bukele’s vision of integrating innovative technology with natural resources.
Bitcoin Training
El Salvador, known for its strong support of Bitcoin, recently unveiled a new Bitcoin training initiative. Announced on X by the National Bitcoin Office (ONBTC), the program aims to educate public servants about Bitcoin. The ONBTC’s post highlighted El Salvador’s ongoing leadership in adopting innovative financial practices.
