El Salvador has been steadily increasing its Bitcoin holdings, now possessing nearly 6,000 BTC, valued at approximately $361 million. Since March 16 of this year, the Central American nation has been purchasing one Bitcoin every day, according to data from Arkham Intelligence. As of now, El Salvador holds 5,852 BTC.
This significant accumulation is part of President Nayib Bukele’s broader strategy to integrate Bitcoin into the country’s economy, a plan that has sparked both international scrutiny and domestic controversy. Recently, Bukele announced that a substantial portion of El Salvador’s Bitcoin reserves had been moved into cold storage, with plans to secure these assets in a vault. This step aims to protect the nation’s digital assets from potential cyber threats and enhance their long-term security.
Since making Bitcoin legal tender in 2021, Bukele has been an outspoken advocate for cryptocurrency adoption. His administration has undertaken several ambitious initiatives, including launching a Bitcoin mining operation powered by geothermal energy from a volcano and introducing “volcano bonds” backed by Bitcoin.
Despite facing significant criticism and concerns from the international community, Bukele’s policies seem to have strong domestic support, as evidenced by his recent re-election for a second five-year term. However, the country’s Bitcoin experiment has not been without challenges.
The International Monetary Fund (IMF) has repeatedly raised concerns 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, highlighting the need to address potential risks associated with this unconventional monetary policy.
In addition to the IMF’s reservations, U.S. lawmakers have also expressed concerns that El Salvador’s Bitcoin adoption could pose risks to American interests.