2024

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El Salvador has shifted a significant portion of its Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noreferrer noopener">BTC</a>) assets into a secure cold wallet, as announced by President Nayib Bukele.&nbsp; 
The Central American nation, under newly <a href="https://crypto.news/el-salvador-votes-for-continuity-and-crypto-under-bukeles-leadership/" target="_blank" rel="noreferrer noopener">re-elected</a> President Nayib Bukele’s guidance, revealed its considerable Bitcoin holdings, totaling 5,689.68 BTC, currently valued at over $386 million. 
This relocation into an offline vault within the nation’s borders marks the creation of the country’s first official “bitcoin piggy bank,” per President Bukele’s words. 
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The step not only showcases El Salvador’s commitment to leveraging cryptocurrency for economic growth but also addresses security concerns by safeguarding against potential cyber-attacks. 
Since adopting Bitcoin as legal tender in September 2021, amidst <a href="https://www.washingtonpost.com/world/2021/06/17/world-bank-bitcoin-el-salvador/" target="_blank" rel="noreferrer noopener">International Monetary Fund</a> (IMF) skepticism, El Salvador has been on a quest to revolutionize its economy.&nbsp; 
By bringing cryptocurrency into the mainstream, the nation aimed to lower overseas remittance fees and bank the unbanked, a significant concern given that 70% of Salvadorans are outside the traditional financial system. 
 You might also like: <a href="https://crypto.news/bitcoin-as-legal-tender-in-el-salvador-and-the-car-key-lessons/"> Bitcoin as legal tender in El Salvador and the CAR: key lessons </a> 
The move to a cold wallet comes amidst ongoing efforts to generate income through Bitcoin, as evidenced by substantial profits from <a href="https://crypto.news/el-salvador-approves-launch-of-bitcoin-volcano-bonds-for-q1-2024/" target="_blank" rel="noreferrer noopener">mining</a> and the Bitcoin-powered Freedom Visa passport program, as highlighted by President Bukele in a recent exchange on social media with crypto influencer Crypto Rover. 
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 + <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#BTC</a> revenue from our passport program + Revenue from converting <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#BTC</a> to USD for local businesses + <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#BTC</a> from mining + <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#BTC</a> revenue from government services <a href="https://t.co/O1sjKoJRiq" target="_blank">https://t.co/O1sjKoJRiq</a>— Nayib Bukele (@nayibbukele) <a href="https://twitter.com/nayibbukele/status/1767323587071947195?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">March 11, 2024</a>
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Despite the ambitious crypto initiatives and the recent surge in Bitcoin value, <a href="https://crypto.news/few-people-sent-money-to-el-salvador-using-bitcoin-and-crypto-in-h1-2023/" target="_blank" rel="noreferrer noopener">skepticism</a> remains among the Salvadoran population regarding the digital currency’s volatility and usability in a predominantly cash-based society. 
But it’s not just about financial gain. El Salvador’s grand vision extends to establishing a tech hub that attracts talents worldwide, further evidenced by recent legislative changes and strategic meetings with potential sovereign investors.&nbsp; 
El Salvador’s policies, such as the elimination of income tax on international investments and money transfers and its Bitcoin-powered <a href="https://crypto.news/el-salvador-congress-green-lights-citizenship-for-investments-in-btc/" target="_blank" rel="noreferrer noopener">passport</a> program, are helping it carve a niche as a place for global crypto innovation and investment. 
When BTC hit a new all-time high on March 14, when it went above $73,000, El Salvador’s holdings would have been worth more than $415 million. The coin is currently holding just above $68,000, a slight 0.8% drop from the previous 24 hours, but still more than 30% higher than where it was 30 days ago.&nbsp; 
 Read more: <a href="https://crypto.news/crypto-market-cap-bitcoin-2025/"> Analyst: Crypto market cap to reach $7.5t, Bitcoin to hit $150k by 2025 </a>

El Salvador moves $386m worth of Bitcoin into cold storage

crypto.news

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