El Salvador has been buying a full Bitcoin (BTC) every day since March 16 this year, taking its total holdings of the largest cryptocurrency by market capitalization to over $360 million.
According to data from Arkham Intelligence, the Central American nation holds 5,852 Bitcoin, valued at $361 million as of this writing.
This substantial investment comes amid a series of controversial decisions and international scrutiny surrounding the country’s cryptocurrency policies.
President Nayib Bukele recently announced that his administration had transferred a significant portion of its Bitcoin treasury into cold storage, with plans to secure it in a vault.
This move aims to enhance the long-term security of the nation’s digital assets and protect them from potential cyber threats.
Since making Bitcoin legal tender in 2021, Bukele has been a vocal proponent of cryptocurrency adoption. His administration has launched initiatives including a Bitcoin mining operation powered by geothermal energy from a volcano, and the introduction of “volcano bonds” backed by Bitcoin.
Despite facing criticism and concerns, Bukele’s recent re-election for a second five-year term suggests continued domestic support for his policies. However, the country’s Bitcoin experiment has not been without challenges.
The International Monetary Fund (IMF) has repeatedly expressed reservations about El Salvador’s cryptocurrency strategy.
In a statement earlier this month, the IMF called for greater transparency in the country’s Bitcoin adoption process, emphasizing the need for additional efforts to mitigate potential risks associated with this unprecedented monetary policy.
Furthermore, the move has drawn attention from U.S. lawmakers, who have voiced concerns that El Salvador’s Bitcoin adoption could pose threats to American interests.
Edited by Andrew Hayward
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