Bitcoin, the world’s largest cryptocurrency asset, continues to see widespread adoption. The Central American country of El Salvador recently made a massive transfer of BTC to the country’s physical reserve.
El Salvador Transfers Thousands Of Bitcoins To Vault
Nayib Bukel, the president of El Salvador, took the social media platform X (formerly Twitter) to share the development with the crypto community on Friday. According to Bukele, the forward-thinking Bitcoin nation reportedly transferred “a big chunk” of BTC into a “cold wallet” this week, fueling optimism in the country.
The president further noted that the cold wallet will be kept within its national territory in “a real (physical) vault.” A cold wallet lowers the possibility of hacking by storing cryptocurrencies offline and away from the internet. In addition, it is regarded as one of the safest ways to store crypto assets over time.
Bukele has dubbed the development the country’s first Bitcoin “piggy bank,” marking the first time El Salvador has carried out such a move. However, while the president believes that the transfer is not much, he is confident that it is “honest work,” suggesting transparency within the country.
Data from a screenshot shared by Bukele shows that El Salvador moved a total of 5,689 BTC, which is also the overall balance to the cold wallet address 32ixEdvjWo…ZZeuwnqzo. As of the time of the transaction, the BTCs above were valued at approximately $406.60 million.
Nonetheless, the coins are valued at $389.70 million at the present price. This is due to the digital asset’s recent correction on Thursday, which saw BTC fall from about $71,000 to $68,000.
Significance Of The BTC Law
As the first country in the world to recognize BTC as legal tender, El Salvador has reclaimed its communal identity in the crypto space. This was made possible through its legal framework, the Bitcoin Law, passed in 2021.
The Legislative Assembly’s deputies approved the Law to create jobs, enhancing true financial inclusion, and fostering economic dynamism. Additionally, it states that cryptocurrency has limitless librating strength which can be utilized in any transaction and under any name.
With 62 votes cast by show of hands, the law was introduced. According to a Global Call to Action Against Poverty (GCAP) representative and human rights advocate César Artiga, “the country has witnessed a significant rise in real estate speculation since the law was implemented.”
Featured image from iStock, chart from Tradingview.com
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