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El Salvador’s Growing Bitcoin Holdings
El Salvador’s President Nayib Bukele recently revealed that the country’s cryptocurrency holdings have reached nearly $400 million, with over 5,695 BTC in a disclosed address. This move signifies a significant increase in the nation’s virtual currency reserves.
Transparency in Crypto Purchases
President Bukele’s administration, previously criticized for lack of transparency in Bitcoin acquisitions, has now shown a more open approach. While earlier purchases were announced casually on Twitter, detailed figures were not readily available. However, the recent disclosure of the amount held in BTC demonstrates a shift towards greater transparency in the government’s dealings.
In a tweet from 2022, President Bukele outlined a daily purchase plan of 1 BTC for the country, showcasing a continued commitment to expanding El Salvador’s cryptocurrency portfolio.
Security Measures and Legal Tender Status
Notably, El Salvador has taken steps to enhance the security of its crypto assets by moving a significant portion to cold storage. This move aims to protect the holdings from potential cybersecurity threats and unauthorized access.
The decision to integrate Bitcoin as legal tender alongside the US dollar faced opposition from international entities like the IMF and US lawmakers. Despite criticisms, President Bukele stood by the policy, emphasizing its importance for the nation’s economic strategy.
Public Reception and Political Landscape
While initial reports suggested limited use of Bitcoin in everyday transactions by Salvadorans, President Bukele has maintained a strong support base within the country. His leadership, credited with reducing crime rates significantly, has earned him widespread popularity among citizens.
However, concerns have been raised by human rights advocates regarding alleged abuses in the government’s anti-gang efforts, leading to mass incarcerations. Despite these challenges, President Bukele secured a landslide victory in the recent reelection, highlighting his continued influence in El Salvador’s political landscape.
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