El Salvador continues to strengthen its position as a global pioneer in national cryptocurrency adoption, recently increasing its Bitcoin reserves to 6,224 BTC, valued at approximately $658.8 million** based on current market prices—averaging around **$105,848 per coin. This strategic accumulation underscores the country’s long-term vision for financial innovation and digital sovereignty.
Managed by the National Bitcoin Office of El Salvador (ONBTC), the latest update was shared via their official X (formerly Twitter) account, reaffirming President Nayib Bukele’s unwavering commitment to growing the nation’s digital asset portfolio. Despite evolving regulations and public skepticism, El Salvador remains one of the few countries actively purchasing and mining Bitcoin at a national level.
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The Genesis of Bitcoin as Legal Tender
In 2021, El Salvador made global headlines by becoming the first country to adopt Bitcoin as legal tender, a bold move initiated by President Nayib Bukele. This landmark decision aimed to promote financial inclusion, reduce reliance on traditional banking systems, and attract foreign investment through blockchain innovation.
The adoption sparked intense debate worldwide, challenging conventional monetary policies and prompting discussions about the role of decentralized currencies in modern economies. While some praised the initiative as forward-thinking, others expressed concerns over volatility, regulatory risks, and practical usability.
However, in early 2025, amendments to the original Bitcoin law led to widespread speculation that Bitcoin was no longer considered legal tender. Under the revised framework, government institutions and private businesses are no longer required to accept Bitcoin for payments, effectively shifting its status from mandatory legal tender to a state-supported digital asset.
Despite this policy shift, the government has maintained its aggressive acquisition strategy—proving that while the mandatory use of Bitcoin may have been scaled back, the nation’s belief in its long-term value remains strong.
Strategic Bitcoin Acquisition: A Daily Commitment
One of the most notable aspects of El Salvador’s strategy is its "1 Bitcoin per day" purchase program, first announced by President Bukele on November 16, 2022. The initiative reflects a dollar-cost averaging approach, designed to steadily accumulate Bitcoin regardless of short-term price fluctuations.
As of March 2024, Bukele confirmed via social media:
“The 1 Bitcoin a day program just deposited today’s Bitcoin. This continues until Bitcoin becomes unaffordable with fiat currencies.”
This disciplined buying pattern allows the country to build reserves without attempting to time the market. Moreover, when prices dip, El Salvador has demonstrated flexibility by purchasing more than one Bitcoin per day, maximizing value during favorable market conditions.
While the exact cost basis, transaction fees, or total investment amount remains undisclosed, the transparency of wallet addresses—such as 32ixEdVJWo3kmvJGMTZq5jAQVZZeuwnqzo—allows blockchain analysts to track holdings in real time. This level of openness enhances credibility and invites global scrutiny, reinforcing trust in the nation’s digital finance agenda.
Why Daily Purchases Matter
Regular accumulation signals confidence in Bitcoin’s long-term appreciation. It also insulates the country from sudden market swings and reduces pressure to make large, risky investments all at once. Over time, this strategy could position El Salvador as one of the largest national holders of Bitcoin—a potential game-changer for its balance sheet and economic independence.
Volcanic Power: Mining Bitcoin Sustainably
Beyond purchasing, El Salvador has invested in domestic Bitcoin mining operations, leveraging its unique geographical advantage: geothermal energy from active volcanoes.
Shortly after legalizing Bitcoin, the government launched initiatives to harness clean, renewable energy for mining. By using steam and heat from volcanic activity to power mining rigs, El Salvador aims to create a sustainable, low-cost model for generating new Bitcoin—without contributing to environmental degradation.
Though specific details such as the number of operational sites or total hash rate remain undisclosed, credible reports from Reuters and Nasdaq confirm partnerships aimed at developing large-scale geothermal-powered mining farms. One project alone was estimated to involve a $1 billion investment, signaling serious long-term intent.
This fusion of natural resources and cutting-edge technology not only strengthens national reserves but also positions El Salvador as a leader in eco-friendly cryptocurrency mining—a growing priority in the global crypto ecosystem.
Securing the Nation’s Digital Wealth
With over 6,224 Bitcoins in its possession, safeguarding these assets is critical. Recognizing the risks of cyberattacks and digital theft, the government has taken significant steps toward secure storage.
In March 2024, President Bukele announced that a substantial portion of the nation’s Bitcoin had been transferred into a cold wallet—an offline storage solution immune to online hacking attempts. More notably, this cold wallet is physically stored in a secure vault within El Salvador’s national territory.
“We’ve decided to transfer a big chunk of our Bitcoin to a cold wallet and store that cold wallet in a physical vault within our national territory. You can call it our first Bitcoin piggy bank. It’s not much, but it’s honest work.”
— President Nayib Bukele
This move mirrors best practices used by institutional investors and high-net-worth individuals. By combining physical security with cryptographic protection, El Salvador is setting a precedent for how nations can responsibly manage digital treasury assets.
Public Perception and Real-World Use
Despite governmental enthusiasm, everyday adoption among citizens remains limited. Surveys and field observations suggest that most Salvadorans continue to rely on the U.S. dollar for daily transactions. Mobile wallet usage—such as the government-backed Chivo Wallet—has seen mixed results, with many users citing usability issues or lack of merchant support.
Additionally, the removal of mandatory acceptance has further reduced incentives for widespread use. However, remittances—money sent home by overseas workers—remain a key area where Bitcoin shows promise. Lower transaction fees compared to traditional services like Western Union could eventually drive broader acceptance.
Frequently Asked Questions (FAQ)
Q: Is Bitcoin still legal tender in El Salvador?
A: While Bitcoin was declared legal tender in 2021, a 2025 amendment removed the requirement for businesses and government entities to accept it. It remains recognized as a national asset but is no longer enforced as mandatory payment.
Q: How many Bitcoins does El Salvador own?
A: As of the latest report, El Salvador holds 6,224 Bitcoins, worth approximately $658.8 million at current prices.
Q: How does El Salvador mine Bitcoin?
A: The country uses geothermal energy from volcanoes to power energy-efficient mining operations, making it one of the most sustainable national mining efforts in the world.
Q: Does El Salvador sell any of its Bitcoin?
A: There is no public evidence that El Salvador has sold any portion of its holdings. The government maintains a “buy and hold” strategy focused on long-term growth.
Q: Where can I verify El Salvador’s Bitcoin holdings?
A: The country's primary wallet address (32ixEdVJWo3kmvJGMTZq5jAQVZZeuwnqzo) is publicly viewable on blockchain explorers like mempool.space.
Q: Why does El Salvador keep buying Bitcoin?
A: The government views Bitcoin as a strategic reserve asset—similar to gold—that can diversify national wealth, hedge against inflation, and attract tech-driven investment.
Final Thoughts: An Ongoing Financial Experiment
El Salvador’s journey with Bitcoin is far from over. Though challenges remain—ranging from public adoption to regulatory clarity—the nation continues to push boundaries in redefining what money can be.
By combining daily purchases, green mining initiatives, and secure cold storage, El Salvador is building a resilient digital treasury model that other countries may one day emulate. Whether this experiment ultimately succeeds depends not just on price performance, but on sustained innovation, education, and infrastructure development.
One thing is clear: El Salvador isn’t backing down. Its continued accumulation sends a powerful message—that Bitcoin is not just a speculative asset, but a cornerstone of national economic strategy.