Key Points
- El Salvador has transferred a significant amount of its Bitcoin holdings to a cold wallet.
- The country's Bitcoin reserves are nearly double the previously known amount, according to the President.
El Salvador's President, Nayib Bukele, announced that a substantial portion of the country's Bitcoin reserves have been moved to a cold wallet.
This move, according to Bukele, is equivalent to establishing the nation's first Bitcoin piggy bank.
The Cold Wallet Move
Bukele explained that the cold wallet, which is stored in a physical vault within the country, now holds a significant amount of the nation's Bitcoin.
The screenshot he shared indicates that the wallet received 5,689.69 BTC, valued at approximately $406 million at the time of the post.
This figure is nearly twice the value of the previously known Bitcoin holdings of El Salvador, which were estimated to be around $200 million.
Bukele has occasionally disclosed the country's Bitcoin holdings on social media when purchases were made.
However, this is the first time he has associated the country's holdings with a specific address.
Bitcoin as Legal Tender
In 2021, under Bukele's leadership, El Salvador adopted Bitcoin as its legal tender.
Since then, the country has been periodically purchasing Bitcoin.
Bukele was re-elected for his second term as president last month.
