The President Of El Salvador For The First Time Revealed How Many Bitcoins The Country’s “Crypto Treasury” Has

Starting in 2021, El Salvador keeps part of its official treasury in Bitcoin. Until recently, it was believed that the authorities had about $210 million at their disposal (at today’s BTC price). However, on March 15, the President of El Salvador dispelled this misconception and shared the size of the crypto treasury. He also announced that the state reserve is now stored in a physical wallet.

Cryptocurrencies in El Salvador: General Details

Fans of cryptocurrency and those who Melbet app download for Android and place bets on sports with cryptocurrency, should consider moving to El Salvador.

El Salvador made history in September 2021 by passing the “Bitcoin Law,” which established Bitcoin as a legal tender alongside the US dollar, making it the first country to do so. This move allows for the payment of goods, services, and taxes in Bitcoin, aiming to facilitate cheaper remittances and financial inclusion for the majority of Salvadorans who operate outside the traditional banking system. President Nayib Bukele championed the initiative, arguing that it would streamline banking processes and attract foreign investment, although the decision has faced criticism both domestically and internationally due to concerns about Bitcoin’s volatility, environmental impact, and government transparency issues.

As of March 2024, El Salvador’s Bitcoin Treasury boasts $84 million in unrealized gains from its cryptocurrency reserves, acquired through multiple purchases since September 2021 at an average price of $42,600 per Bitcoin.

President Bukele recently announced that the country is accruing additional Bitcoin revenue from various sources, including proceeds from the citizenship passport program, Bitcoin mining operations, and income generated from government services. Furthermore, El Salvador introduced the “Freedom Visa” program in December, offering residency to up to 1,000 individuals annually who invest at least $1 million in Bitcoin or the stablecoin Tether (USDT), providing successful applicants with long-term residency permits and a pathway to citizenship.

How Much Cryptocurrency Does El Salvador Have? The President Answers

On March 15, the President of El Salvador published a post on Twitter with a screenshot showing a transaction of 5689.685 BTC.

This week, El Salvador, a leading advocate for Bitcoin adoption in Central America, transferred approximately $400 million worth of Bitcoin (BTC) into a cold wallet, as confirmed by President Nayib Bukele. Bukele described this move as establishing their “first #Bitcoin piggy bank,” with the cold wallet securely stored in a physical vault within the nation’s borders. Accompanying his announcement was a snapshot revealing the wallet’s contents, totaling 5,689.68 BTC, valued at $411 million at current prices.

This disclosure significantly amplifies the scale of El Salvador’s Bitcoin holdings, surpassing previous estimations. Despite public trackers placing the nation’s Bitcoin reserves at less than 3,000 BTC earlier in the week, the recent transfer underscores a substantial increase in holdings. Bukele hinted that besides purchasing BTC, El Salvador also acquires it through various avenues, including selling passports, conducting currency conversions for local businesses, mining activities, and government services. This development marks the first time Bukele has linked his country’s holdings to a specific address, departing from his previous practice of updating the public through social media posts. Since becoming the first country to adopt Bitcoin as a treasury asset in September 2021, El Salvador has witnessed a notable appreciation in the value of its Bitcoin reserves, with prices rising from around $52,000 to over $72,000 as of Thursday. The recent on-chain transfers into El Salvador’s cold wallet, primarily sourced from Bitfinex according to Arkham Intelligence, reflect a strategic move to fortify the nation’s Bitcoin reserves.

Is it safe? Big question. On the one hand, on a cold wallet, El Salvador’s crypto-piggy bank is protected from hacker attacks. On the other hand: there is a risk of physical theft. Anyone who has access to it and knows its location can simply pick up the drive. And the bet is too high because $400 million is a huge amount.

The total number of Bitcoins in El Salvador also remains unknown. According to the President, they transferred “most of it,” that is, some amount of cryptocurrency remained elsewhere.