El Salvador launches Bitcoin Treasury website for its $360 million BTC reserves

Last updated: May 13, 2024 10:07 am EDT | 2 minutes of reading

El Salvador, known for its decision to adopt Bitcoin as legal tender in September 2021, has now introduced a cutting-edge online platform to track the country’s Bitcoin Treasury.

The initiative, led by The Bitcoin Office, a Salvadoran government agency dedicated to overseeing Bitcoin-related projects, aims to provide public access to data on the country’s BTC investments through a specialized mempool.

El Salvador launches public platform for transparency in Bitcoin holdings

The official announcement of the Bitcoin Office stated,

“EL SALVADOR NOW HAS ITS @MEMPOOL WHERE ANYONE CAN CHECK OUR BITCOIN TREASURE.”

The introduction of this platform represents a significant step towards improving the financial transparency of government operations in El Salvador. The newly launched mempool-like site offers public access to data on El Salvador’s BTC investments.

According to the website, the country holds 5,748.76 BTC, valued at more than US$352.8 million. The platform also reveals that the Salvadoran government acquired an additional 31 BTC last month and 7 BTC the week before.

Bitcoin balance history in El Salvador Source: Bitcoin.gob.sv

The recent addition to its BTC reserves is in line with President Nayib Bukele’s visionary strategy, announced in November 2022, in which El Salvador aims to accumulate “1 bitcoin per day”. By actively increasing its Bitcoin reserves, El Salvador continues to position itself as a leader in Bitcoin and blockchain technology.

With the launch of this new website, El Salvador continues to lead the way in the adoption of Bitcoin and blockchain technology. Some proponents speculate that these strategic initiatives could position El Salvador as one of the richest and most innovative nations in the world in the coming decades, driven by Bitcoin adoption.

El Salvador’s Bitcoin Experiment: A Steady Journey Through Volatility

El Salvador made headlines in September 2021 by becoming the first country to adopt Bitcoin as legal tender. The measure aimed to promote financial inclusion, simplify remittance payments and promote financial innovation.

President Nayib Bukele’s decision has faced criticism, especially after the price of Bitcoin plummeted from its all-time high of $69,000 in November 2021. Despite the volatility, El Salvador has remained steadfast in its Bitcoin strategy, dollar-cost averaging for the cryptocurrency since 2021, with an average purchase price of $43,097 per BTC.

With Bitcoin currently trading above $62,000, El Salvador’s holdings yielded unrealized profit in excess of US$57.4 millionaccording to the Nayib Bukele Portfolio Tracker website.

In a recent comment, Bukele, who secured re-election in February, took aim at mainstream media narratives surrounding the government’s economic policies. He criticized the media focus on El Salvador’s Bitcoin holdings, highlighting the contrast in coverage between periods of low and high prices in the Bitcoin market.

Bukele emphasized the significant increase in Bitcoin’s market value, suggesting that if El Salvador sold its holdings now, it would make a profit of more than 40%. He reiterated the government’s stance on holding Bitcoin, emphasizing that “1 BTC = 1 BTC” regardless of market fluctuations. Bukele highlighted the silence of media critics who previously highlighted potential losses during Bitcoin’s price crash.

Despite the attention received by El Salvador’s adoption of Bitcoin, it remains a unique example among nation states in adopting a “Bitcoin standard.” While rumors have been circulating about other countries potentially following suit, no official announcements have been made.

However, there is speculation that if Bitcoin reaches $100,000, El Salvador could pay its loans to the International Monetary Fund, paving the way for financial independence.

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