El Salvador has made a big move in the crypto world, transferring over 5,000 Bitcoin (BTC) to a physical vault.
Cold Wallet Security
President Nayib Bukele announced the transfer on social media, saying it was stored in a “cold wallet” within the country’s vault. Cold wallets are offline storage devices that keep cryptocurrencies safe from hacking.
El Salvador’s Piggy Bank
Bukele called the vault El Salvador’s first Bitcoin “piggy bank,” marking a significant step in the country’s adoption of the cryptocurrency.
Value and Significance
At the time of the transfer, the 5,689 BTC was worth around $406.60 million. However, the value has since dropped to $389.70 million due to a recent correction in the crypto market.
Bitcoin Law
El Salvador’s move is part of its broader embrace of Bitcoin, becoming the first country to make it legal tender in 2021. The Bitcoin Law aims to boost financial inclusion and economic growth.
Speculation and Concerns
Despite the positive outlook, some have expressed concerns about the potential for real estate speculation and other negative effects of the Bitcoin Law.
