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 cryptocurrency endeavors, persisting with its daily acquisition of Bitcoin (BTC) as part of its ongoing “1 BTC a day program.” Despite the downturn, the pioneering crypto nation continues to bolster its digital assets.
Recent data from BitInfoCharts highlights that El Salvador’s designated crypto wallet has been consistently purchasing one Bitcoin daily. This initiative, which began in March, is part of a strategic effort to amass BTC through a state-managed cold wallet.
The commitment to this daily purchase was reaffirmed by President Nayib Bukele in March, following his declaration in November 2022. President Bukele has stated that the nation will persist in this endeavor until the cost of Bitcoin becomes prohibitive in terms of traditional currency. He also confirmed that there are no current plans to liquidate the country’s Bitcoin reserves.
El Salvador has taken significant steps to secure its cryptocurrency assets, transferring a substantial portion to what President Bukele refers to as the nation’s “first Bitcoin piggy bank”—a secure cold wallet. This move was bolstered by the acquisition of Bitcoins from the crypto exchange Bitfinex. Additionally, a Reuters report disclosed that El Salvador has successfully mined 474 BTC over the past three years, utilizing the geothermal energy of the Tecapa volcano.
In a recent development, El Salvador announced its intention to further integrate Bitcoin into its financial system. A proposed reform seeks to empower banks to conduct transactions in both Bitcoin and the US dollar.
Despite the volatility of the market and a significant drop in Bitcoin’s value—plummeting towards $58,000 with total liquidations hitting $260 million—El Salvador’s dedication to its Bitcoin strategy remains unshaken. The cryptocurrency, which saw a high of over $63,000 on July 2, experienced a sharp decline, falling below $60,000. At present, it hovers around $58,471. This downturn has also affected various altcoins, with Bitcoin experiencing a 3.7% decrease in the last 24 hours.
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