- El Salvador sets up the countryโs inaugural BTC โpiggy bank.โ
- The cold storage BTC wallet is kept on El Salvadorโs premises.
- Crypto aficionados send miscellaneous donations to the address.
El Salvador, the country pioneering Bitcoin (BTC) adoption, has made yet another brave move, as revealed by President Nayib Bukele. Using a cold storage device, El Salvadorโs government transferred 5,689 BTC to a physical vault somewhere in the nation’s territory.
This enables El Salvador to stash its BTC in a physical vault that is not dependent on the Internet and isnโt susceptible to hacking attacks. The decision to move a โbig chunkโ of El Salvadorโs Bitcoin holdings also bolsters transparency and enhances the Central American countryโs credibility.
According to a screenshot shared on X by the re-elected President Nayib Bukele, the BTC was estimated to be worth $406,607,655 at stamped transaction time. The wallet address 32ixEdVJWo3kmvJGMTZq5jAQVZZeuwnqzo is now fully trackable on the blockchain.
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โItโs not much, but itโs honest work,โ adds Bukele, as his countryโs BTC holdings recently reached an $85 million profit as his second presidential term kicks in. The on-chain stats hint at El Salvador using a multi-sig wallet to conduct the transactions, as the first deposit of 1,120 BTC was made on March 13, 2024, and it needed four signatures for the on-chain transfer to be carried out.
El Salvadorโs Cold Wallet Receives Fan Donations
Soon after Bukele posted the message, Bitcoin aficionados took the opportunity to lavish El Salvador with a flurry of non-fungible tokens (NFTs), including Bitcoin Ordinals and Satoshi inscriptions. El Salvadorโs official cold wallet now owns 67 BTC inscriptions, ranging from cat-themed NFTs to the Cypherpunk Manifesto and a 3D runestone.
The generous donations from the crypto community havenโt been left unnoticed, as Gerson Martinez, a member of the strategist team at the Volcano Energy project, remarked: โGotta love bitcoiners, Donations rolling into El Salvadorโs cold wallet.โ While the Bitcoin wallet continues to receive Satoshis and BRC-20 inscribed digital relics, the countryโs cold wallet balance has dipped by $23 million to $383,736,369 after Bitcoinโs 7% market correction this Friday.
On the Flipside
- El Salvadorโs decision to adopt Bitcoin (BTC) nationwide has led to credit score downgrades from global financial regulation institutions, including multiple warnings from the International Monetary Fund (IMF).
- The move to showcase the BTC holding draws attention to the quality control of El Salvadorโs financial collateral ecosystem, which could make financial institutions more lenient regarding credit scores.
Why This Matters
El Salvador is at the forefront of worldwide blockchain technology adoption, becoming the first country to accept BTC as legal tender in September 2021.
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