El Salvador Introduces $360M Bitcoin Treasury Tracking Website
El Salvador became the first nation to list Bitcoin as a legal tender. Now the publication reported that the nation has added around 5700 Bitcoins to its national treasury operating as the government-backed Bitcoin reserve.
Bitcoin Participation Program
There have been reports of foul-play and fraud by local investors regarding the Bitcoin participation program in the Latin American nation.
In a bid to promote Bitcoin’s use among locals, President Bukele introduced Chivo wallet, a crypto-custodial service. Locals were able to sign-up for the wallet with their local identification documents and collect Bitcoins distributed by the national treasury as a promotional deal.
However, some of the locals reported that their Chivo sign-up award retracted or disappeared from their wallet accounts.
In the same manner, there have been a lot of concerns from the local business community and citizens regarding the utility and transparency of the national Bitcoin project.
However, the country reportedly launched a local proof-of-reserves site as a way to address the concern among investors. The site is inclusive of a number of useful tools to monitor the Bitcoin national treasury using on-chain data.
El Salvador Brings More Transparency for Bitcoin Investors
The new site is set to serve as the online Bitcoin treasury for El Salvador. The investors and local citizens will be able to monitor Bitcoin transactions and holdings of the reserve in real-time.
According to the official statistics, the government holds around 5,748 Bitcoins, and at current price, the reserve is valued at $360 million. For the duration, Bitcoin is trading at $62,700 per unit in the spot market.
The national treasury of the nation has now invested in 7 new Bitcoins with $438,000 Bitcoins last week. During the last month, the nation bought a total of 31 Bitcoins that were valued $2 million.
The government has vowed to add 1 Bitcoin to the national treasury on a daily basis. The nation has retained its position as the first ever to incorporate Bitcoin into their national reserves since 2021.
At the same time, government officials have also adopted various important measures such as financial inclusion, efficient remittance options, and fintech innovation. All these policies are aided by the addition of Bitcoin as a legal tender in the Latin American nation.
The decision was spearheaded by President Nayib Bukele. Bukele was subjected to a lot of criticism when Bitcoin prices fell during the crypto winters in the aftermath of the FTX collapse.
Massive Returns on El Salvador’s Bitcoin
After facing a considerable amount of skepticism, the nation was finally able to receive some good news in 2024. The Bitcoin treasury of the country received a massive profit when Bitcoin prices reached a new height of $72K this year.
The recovery also wiped out the losses after Bitcoin prices went as low as $16,000 during the bear season. El Salvador has reported the dollar-cost averaging price of its Bitcoin acquisition since 2021.
As per the official statistics, the average purchase price of Bitcoin in the national treasury is calculated to be around $43,097 per unit. Now that Bitcoin is trading around $62 thousand the nation has reported an unrealized profit of more than $57.4 million.
These statistics have been confirmed by the Portfolio Tracking website that was launched recently under the helm of President Bukele after his second term.
The Bitcoin holdings of the nation have proved to be an important source of financial stability and strength. Speaking on the matter, Tim Draper a popular venture capitalist spoke with Cointelegraph.
He projected that at the current rate El Salvador can attain financial independence and be in a position to return the loan to IMF, provided that Bitcoin prices reach $100,000 per unit.
The sentiment is shared among many popular crypto influencers and analysts. The reigning opinion is that Bitcoin is on its way to surpass $100,000 for the 2024 and 2025 Bull Run. A Bitfinex report has suggested that the Bitcoin halving of 2024 could lead to market top of $150,000. The analytics firm told Cointelegraph that on account of the straightforward regression model, the possibility of a 160% post halving in the upcoming 14 months.
