El Salvador’s Commitment to Cryptocurrency Endures Amid Market Downturn
**Sujha Sundararajan**
_Last Updated: July 4, 2024, 06:09 EDT | 1 min read_
In the face of a fluctuating market, El Salvador remains steadfast in its embrace of cryptocurrency, persisting with its daily acquisition of Bitcoin (BTC) through its “1 BTC a day program.” Despite the downturn, the nation’s crypto wallet, as per BitInfoCharts data, continues to strategically bolster its Bitcoin reserves, adhering to a policy initiated in March under the guidance of a state-managed cold wallet.
The Salvadoran President, Nayib Bukele, has been a vocal proponent of this initiative since its announcement in November 2022. In March, he reaffirmed the nation’s strategy to persist with the daily Bitcoin purchase until the cost in fiat currency becomes prohibitive. This stance followed his February declaration that El Salvador has no plans to liquidate its Bitcoin holdings.
El Salvador has also relocated a substantial portion of its cryptocurrency assets into what President Bukele refers to as the nation’s inaugural “Bitcoin piggy bank,” a secure cold wallet. Reports indicate that these Bitcoins have been sourced from the crypto exchange Bitfinex, and additional information from Reuters suggests that El Salvador has successfully mined 474 BTC over the past three years, leveraging the geothermal energy of the Tecapa volcano.
Recently, the Latin American country has taken steps to further integrate Bitcoin into its financial infrastructure. A proposed reform seeks to empower banks to operate with both Bitcoin and the US dollar, signaling a significant advancement in the nation’s banking sector.
Despite the volatility of the market and a significant drop in Bitcoin’s value to $58,000, with total liquidations hitting $260 million, El Salvador’s dedication to its Bitcoin strategy remains unshaken. The cryptocurrency’s value, which stood at over $63,000 on July 2, has since plummeted below $60,000. Currently, Bitcoin is trading at approximately $58,471, with a 3.7% decrease over the past day, impacting several altcoins in the process.
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