The price of Bitcoin has fallen over the past few days amid increased selling pressure due to Mt. Gox payouts and a bleak economic outlook. Despite this, El Salvador still buys one Bitcoin (BTC) every day.
According to BitInfoCharts, cold wallet controlled by the El Salvadoran government, has accumulated 1 BTC since mid-March, when El Salvadoran President Nayib Bukele transferred the country’s entire BTC holdings to a cold wallet and published the address.
At the time of the transfer, there were about 5,600 BTC worth more than $400 million in El Salvador. Bukele called the wallet El Salvador’s “first bitcoin piggy bank.”
The March disclosure also marked the first time the president has publicly revealed El Salvador’s Bitcoin wallet address. Previously, he had only updated information about new Bitcoin purchases on social media.
El Salvador’s constant Bitcoin purchases are part of Bukele’s daily buying strategy. The president announced in 2022 that the country would begin buying one Bitcoin per day, starting November 18, 2022.
The activation of the strategy follows a significant event in September 2021, when El Salvador became first country to accept bitcoin as legal tender.
Bukele previously stated that the country is not simply buying BTC, but accumulating it through the sale of passports, currency conversion, mining and other government services.
According to Reuters, as of May 15, 2024, El Salvador 473.5 bitcoins mined (BTC) using geothermal energy from the Tekapa volcano.
El Salvador recently revealed its plans advanced Bitcoin integration into its banking system. The government has reportedly submitted a reform proposal to create a private investment bank that allows for transactions in Bitcoin and US dollars.
