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El Salvador Implements Bitcoin Tracking Tool for Treasury Holdings: Confirms Plans to Buy 1 BTC Per Day
- El Salvador launches a proof-of-stock website to track its Bitcoin holdings, aiming to increase transparency in its cryptocurrency operations.
- The country’s move follows its groundbreaking decision to adopt Bitcoin as legal tender, with the website offering real-time data on its Bitcoin reserves.
El Salvador recently unveiled a noteworthy initiative, launching its own reserve test website to provide real-time transparency regarding the nation’s Bitcoin holdings. The move highlights El Salvador’s commitment to embracing cryptocurrency and leveraging blockchain technology for financial transparency and innovation.
El Salvador’s decision to introduce a proof of reserves website underlines its commitment to financial transparency. This online platform, open to the public, aims to be the source of the latest information on the country’s Bitcoin reserves. This step is in line with El Salvador’s overall goal of increasing accountability in government operations and building trust among citizens and the international community.
Constant accumulation of Bitcoin
El Salvador’s proactive approach is evident in its recent Bitcoin acquisitions. Last week, the country acquired seven BTC, for a total of over $438,000, while also adding 31 BTC worth $1.94 million in the last 30 days. These purchases are in line with El Salvador’s ambitious goal of adding one Bitcoin to its treasury every day.
El Salvador made headlines in June 2021 when it became the first country in the world to adopt Bitcoin as legal tender. The decision, driven by President Nayib Bukele, aimed at promoting financial inclusion, facilitating more efficient remittance payments and promoting an environment conducive to financial innovation. Despite initial concerns about the potential implications for its relations with the International Monetary Fundthe country carried out its revolutionary decision.
With the new law, Bitcoin gained legal recognition for payments for goods and services, as well as for tax contributions. Furthermore, the government’s development strategy, introduced in November 2022, outlines the ambitious goal of accumulating one bitcoin per day.
The potential economic impact of Bitcoin
El Salvador’s strategic accumulation of Bitcoin could produce significant economic benefits for the nation. With an average purchase price of $43,097 per BTC, the country currently enjoys an unrealized profit of over $57.4 million on its Bitcoin holdings. Venture capitalist Tim Draper believes that if Bitcoin reached $100,000, El Salvador could achieve financial independence and even repay its loans to the International Monetary Fund.
El Salvador’s adoption of Bitcoin as a multifaceted vision drives legal tender. In addition to improving financial transparency, the government aims to promote financial inclusion and facilitate more efficient remittance payments. Harnessing the transformative potential of Bitcoin, El Salvador seeks to make its citizens responsible economically and attract innovation in the financial sector.
Crypto analysts remain optimistic about Bitcoin’s future price trajectory, with many predicting a rise above $100,000 during the ongoing bull cycle. According to research reports, after the 2024 halving, Bitcoin could potentially reach a cyclical high of over $150,000. Institutional inflows from Bitcoin spot exchange traded funds are expected to play a critical role in driving Bitcoin price action in the coming months.
Additionally, the data indicates a positive trend in institutional inflows into US spot Bitcoin exchange-traded funds. After three weeks of net outflows, US Bitcoin ETFs saw net inflows of $413 million last week alone. This renewed investor interest in Bitcoin is poised to fuel further price appreciation and market momentum.