El Salvador’s Bitcoin treasury has topped 5,740 BTC, an asset now worth around $353 million at current prices. This recent revelation serves as a testament to El Salvador’s bet on BTC.
El Salvador: pioneering the path to digital prosperity
El Salvador, the Central American nation made history when it declared Bitcoin as a legal tender in 2021. The country recently unveiled an official real-time tracker for its Federal Bitcoin treasury.
The International Monetary Fund (IMF) raised apprehensions regarding the adoption of cryptocurrency as a national currency, highlighting the need for careful evaluation and consideration of its implications. Besides the IMF, the World Bank and other rating agencies also cautioned against the El Salvador Bitcoin bet.
To provide transparency and allow the public to track these holdings, the National Bitcoin Office collaborated with Mempool.space, an organization that publishes BTC transaction data, to create the tracking website.
From Bitcoin dreams to remittance realities
In 2021 when it adopted Bitcoin, President Nayib Bukele initiated the purchase of the coin using public funds.
This year, a major security measure has been taken to move most of its Bitcoin to a cold wallet. This offline storage method reduces the risk of hacking and guarantees the safety of the coins.
President Nayib Bukele expressed optimism about the potential of BTC for remittances. However, according to a recent estimate, only 1% of Salvadorans currently utilize Bitcoin for money transfers.
Users in the country have reported facing transaction fees exceeding $20, which makes using the coin for remittances increasingly expensive and impractical. The remittance woes got a scare recently as the country’s Chivo Wallet was hacked. Despite these challenges, the country remains committed to its BTC strategy.
According to numerous crypto analysts, there is a strong belief that BTC will exceed the $1 million milestone by 2023. At press time, the digital coin is exchanging hands at $61,573.94, down by 2.42% in the last 24 hours.