The Central American country El Salvador has grown into a true BTC whale that has amassed a lot of Bitcoin in the country’s reserves.
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.
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.
Join our Facebook group and Telegram group Coincu News to chat with more than 10,000 other people and share information about the crypto currency market.
Important NOTE: All content on the website is for informational purposes only and does not constitute investment advice in any way. Your money, the choice is yours.
Grand Cayman, Cayman Islands, May 3rd, 2024, ChainwireProtocol launches, growth trajectory, and industry-leading technology point…
Bitcoin and Ethereum options contracts worth $2.4bn expire on May 3, potentially causing market volatility.…
The integration helps users with a $10 USDC reward for purchasing at least $10 of…
11 people lost property worth NT$4.34m in a Singapore crypto poker robbery, including $3.58m SGD…
Hong Kong asset managers invested $112M in US-based spot Bitcoin ETFs. Yong Rong Asset Management…
Arthur Hayes offers insights into Bitcoin's recent performance, along with predictions for its future trajectory,…
This website uses cookies.