El Salvador’s President Unveils Secret Bitcoin ‘Piggy Bank’

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Key takeaways:

  • El Salvador establishes a Bitcoin piggy bank with $400 million worth of Bitcoin
  • El Salvador has locked $400 Million worth of Bitcoin in a cold storage

El Salvador’s President Nayib Bukele has caused a stir in the crypto world by unveiling a secret piggy bank chamber containing over 5,689 Bitcoins. 

The revelation, including 4,560 Bitcoins received from Bitfinex, has raised eyebrows given El Salvador’s partnership with Bitso as its bitcoin custodian. Bukele’s transparency about the nation’s Bitcoin holdings, now valued at $388.7 million, comes as a surprise to many, surpassing earlier estimates and indicating significant growth in the country’s crypto assets.

The public disclosure of the wallet address marks a bold move by Bukele to track Bitcoin’s movement and growth transparently. 

Despite prior estimates pegging El Salvador’s Bitcoin holdings at around $200 million, the actual figure stands at a staggering $411 million, highlighting the nation’s substantial investment in cryptocurrencies. Bukele has attributed this growth to additional revenue streams, including proceeds from the Freedom VISA initiative, Bitcoin mining operations, and various government-provided services.

However, critics like Mario Gomez have questioned the alignment of Bukele’s Bitcoin purchase announcements with transfers made to the country’s crypto wallet.  

Despite skepticism, Bukele has defended the transparency of El Salvador’s Bitcoin holdings, emphasizing the country’s innovative initiatives like the Freedom VISA program and plans to become a leading player in global crypto mining.

President Nayib Bukele’s Bitcoin strategy faced scrutiny as its value plummeted from $69,000 in November 2021 to $16,000 a year later. However, the investment rebounded when Bitcoin exceeded the average purchase price of $42,600 in February.

El Salvador’s Bitcoin tracker indicates holdings of 2,864 BTC, valued at $188 million, obtained through 12 transactions at an average price of $42,630 each. With Bitcoin surging 176% over the past year, the country’s unrealized gains have soared to $66 million, marking a 54% profit from the initial investment.

El Salvador’s ambitious foray into the world of cryptocurrencies signals a progressive approach towards embracing digital assets and fostering economic growth through innovative initiatives. With plans for mega Bitcoin mining farms and initiatives like the Freedom VISA program, the nation is poised to make a significant impact on the global crypto landscape.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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