With the ongoing development of crypto El Salvador president Nayib Bukele confirmed that his administration moved a measurable amount of Bitcoin assets to cold wallets. These Bitcoin holdings will remain locked in a vault.
On X the pro Bitcoin president demonstrated that wallets were holding 5689 Bitcoin worth around $406 million. The official shared the screenshot of the amount of Bitcoin El Salvador owned.
El Salvador Moves Substantial Amount of BTC to Cold Wallet
In an earlier interview conducted in late February, the El Salvador Bitcoin holding equated to 2848. The new Bitcoin holding demonstrated that El Salvador has expanded its BTC investments to hedge inflation.
According to Bitfinex El Salvador has currently moved a significant amount of BTC to a cold wallet. The blockchain data firm noted that approximately 4568 Bitcoin was wired through Bitfinex.
Shortly after the transaction around 4007 BTC was sent directly to cold wallet from Bitfinex exchange. This transaction illustrates that the El Salvador treasury wallet has regularly received BTC even after Bukele shared the screenshot.
On Friday the wallet contained 5689.7 BTC worth around $415 million. President Bukele described the wallet as a Bitcoin piggy bank.
The transaction demonstrated that El Salvador has accumulated a measurable amount of BTC. The report indicates that the crypto-friendly state ranks among the leading countries to acquire Bitcoin as a treasury asset.
The first Bitcoin investment was in September 2021 when BTC was valued at $52,000. With the irregular market swing the BTC price breached the $72K mark on March 14.
President Bukele Leads in Establishing Bitcoin Projects in El Salvador
Since 2021 Bukele has actively been campaigning for Bitcoin after the Central American country accepted BTC as a legal tender. President Bukele has initiated various projects that support the use case of Bitcoin and other crypto assets.
In his previous regime, President Bukele launched a Bitcoin mining site powered by geothermal energy. He also oversaw the launching of the Bitcoin volcano bond and introduced the freedom visa program.
Among the many Bitcoin initiatives launched by President Bukele the Central American country ranks among the leading crypto-friendly states. The unique regulatory approach for digital assets greatly contributed to the reelection of Mr Bukele as the president of El Salvador.
Despite facing backlash from global regulators including the International Monetary Fund (IMF), Bukele has aggressively defended Bitcoin. In April the IMF advised the government of El Salvador to revise the Bitcoin law accordingly.
Global Regulators Condemns El Salvador Bitcoin Law
The IMF condemned the El Salvador crypto regulation citing the risk associated with the adoption of friendly policies on digital assets. The financial regulators envisage that the acceptance of Bitcoin as a legal tender will expose the Salvadorans to macroeconomic, legal, and financial challenges.
Shortly after the IMF issued the warning the US legislator expressed concerns about the crypto regulation adopted in El Salvador. The policymakers complained that the attractiveness of El Salvador’s crypto environment might expose American investors to multiple risks.
Despite the early warning from global regulators, the Bukele administration stepped forward to ensure the success of the Bitcoin initiative in the Central American region. From his past achievement in steering the crypto-friendly state forward, Bukele was reelected for the second term.
In a separate writing, a crypto enthusiast from El Salvador Marce Romero confirmed that the adoption of crypto in the region has significantly reduced the transaction cost. On X Romero stated that as per the current market price, it costs $20 to complete a $100 transaction.
