El Salvador Moves Bitcoin Holdings to Offline Vault – Stirs Global Interest

In a significant move for cryptocurrency security, El Salvador transfers a large portion of its Bitcoin assets to cold storage.

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  • El Salvador has initiated the transfer of a substantial part of its Bitcoin holdings into an offline vault.
  • The country’s current Bitcoin portfolio is estimated at around $407 million.
  • Following the announcement, the community contributed “rare sats” and Ordinals to El Salvador’s wallet.
  • A notable transaction included transferring 4,000 BTC valued at approximately $273 million.
  • Despite being legal tender in El Salvador since September 2021, 88% of Salvadorans have not used Bitcoin in 2023.

El Salvador has taken a bold step towards securing its national cryptocurrency assets by moving a significant portion of its Bitcoin holdings into an offline storage solution. President Nayib Bukele announced on Thursday that this move aims to safeguard these digital assets within the nation’s borders.

The Central American country made headlines in September 2021 by becoming the first nation globally to adopt Bitcoin as legal tender alongside the US dollar. This recent initiative further underscores El Salvador’s commitment to integrating cryptocurrency into its financial ecosystem.

As per President Bukele’s announcement, El Salvador currently boasts a Bitcoin stash worth approximately $407 million.

However, details regarding the exact size of its holdings remain undisclosed amidst growing global curiosity spurred by recent surges in cryptocurrency values.

Following this announcement, enthusiasts from around the world showed their support through donations made directly to El Salvador’s newly established cold wallet address.

These contributions included not only monetary gifts but also “rare sats” and Ordinals – unique digital artifacts including text inscriptions and images such as a copy of Eric Hughes’ “Cypherpunk Manifesto.”

One particularly noteworthy transaction involved shifting 4,000 BTC (valued at about $273 million) into this secure wallet just hours after Bukele’s public statement.

This gesture was met with admiration from Gerson Martínez of Volcano Energy – highlighting how it exemplifies solidarity within the global bitcoin community.

Despite embracing digital currency officially for nearly two years now, adoption rates among Salvadorean citizens remain low; according to surveys conducted by Central American University (UCA), 88% reported not using Bitcoin in any transactions throughout 2023.

Nevertheless, President Bukele continues advocating for widespread use aiming at reducing remittance costs and fostering financial inclusion among unbanked populations.

This strategic move towards utilizing cold storage facilities marks an essential milestone in managing national crypto-assets securely while navigating fluctuating market dynamics.

It reflects both confidence in digital currencies’ future role within global finance systems and caution against potential vulnerabilities inherent in online asset management practices.

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