bitcoin, the world's largest cryptocurrency asset, continues to see widespread adoption. The Central American country of El Salvador recently made a massive transfer of btc to the country's physical reserve.
El Salvador transfers thousands of bitcoins to vault
Nayib Bukelthe president of El Salvador, took the social media platform share development with the crypto community on Friday. According to Bukele, the forward-thinking bitcoin Nation transferred “a large portion” of btc to a “cold wallet” this week, fueling optimism in the country.
The president also noted that the cold wallet will be kept within his national territory in “a real (physical) vault.” A cold wallet reduces the possibility of hacking by storing cryptocurrency offline and away from the Internet. Additionally, it is considered one of the safest ways to store cryptoassets over time.
Bukele has called the development the country's first bitcoin “piggy bank,” marking the first time El Salvador has made such a move. However, although the president believes that the transfer is not much, he is confident that it is “honest work,” suggesting transparency within the country.
Data from a screenshot shared by Bukele shows that El Salvador moved a total of 5,689 btc, which is also the overall balance to the cold wallet address 32ixEdvjWo…ZZeuwnqzo. At the time of the transaction, the btc mentioned above was valued at approximately $406.60 million.
However, the coins are valued at $389.70 million at current prices. This is due to the digital asset's recent correction on Thursday, which saw btc fall from approximately $71,000 to $68,000.
Importance of the btc law
As the first country in the world to recognize btc as legal tender, El Salvador has reclaimed its community identity in the crypto space. This was possible thanks to its legal framework, the bitcoin Law, approved in 2021.
The deputies of the Legislative Assembly approved the Law to create jobs, promote true financial inclusion and promote economic dynamism. Furthermore, he states that cryptocurrency It has unlimited libration force that can be used in any transaction and under any name.
With 62 votes cast by show of hands, the law was approved. According to César Artiga, representative of the Global Call to Action Against Poverty (GCAP) and human rights advocate, “the country has witnessed a significant increase in real estate speculation since the law was implemented.”
Featured image from iStock, chart from Tradingview.com
