El Salvador turns into a major bitcoin whale, ending at 1,400 BTC in 2021
El Salvador is at 1,400 BTC. to the great Bitcoin whale
Among the many positive news for the crypto market in 2021, the recognition of BTC as legal tender in El Salvador cannot be overlooked.
And in what may be the last Bitcoin (BTC) purchase for 2021, El Salvador bought another 21 Bitcoin on Tuesday (December 21).
This new operation has increased the BTC reserves that the Central American country has amassed to 1,391 units.
The announcement was made by President Salvador Nayib Bukele, who used his Twitter account to announce official BTC purchases.
The roughly 1,391 BTC the country owns comes from a cumulative number of 8 tweets that Bukele posted between September 6th and December 21st of this year.
The value could be higher or lower, however, as no information of any value about the activity was found either on the official websites of the El Salvador government or in the public Bitcoin wallet.
The BTC transparency issues in El Salvador are still important
Bukele described the buying process for the last 21 BTC through various tweets. In addition to this, he also mentioned the fact that El Salvador happened to cover an area of 21,000 square kilometers.
While blockchain is a transparent mechanism, this does not necessarily apply to El Salvador as the government does not disclose information about how its Bitcoin reserves are managed.
As a result, Forbes indicated, with limited information, that BitGo, an institutional digital asset custody platform, will be the “exclusive provider” of liquidity to Chivo’s official portfolio.
At the same time, the crypto exchange Bitso also said it will be the main provider of the Chivo portfolio and support operations in both BTC and dollars.
No information has been denied or confirmed by a Salvadoran government spokesman.
In addition, other details about El Salvador’s activities are also unknown. This includes whether the state delegates the official BTC management to third parties, whether they keep their reserves in cool wallets or whether they have control over the private keys.
This information is relevant because BitGo is headquartered in the United States, a country where Bukele has some differences during his tenure.
This implies that, in a hypothetical conflict scenario, there would be a risk of the El Salvador BTC contained in BitGo deteriorating.
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