El Salvador, one of the first countries to adopt Bitcoin as legal tender, has introduced a proof-of-reserves website for monitoring its Bitcoin holdings. Directed by The Bitcoin Office, a government agency that supervises Bitcoin-related projects in the country, El Salvador launched an online platform that focuses on monitoring the region’s Bitcoin treasury leveraging on-chain data.

Through the website, the country intends to deliver real-time data on its Bitcoin reserves. Currently, El Salvador holds 5,748 BTC, worth nearly USD 360 million, with the cryptocurrency trading above the USD 62,700 mark, at the time of the announcement. In June 2021, the country became the first in the world to adopt Bitcoin as legal tender after Congress approved the official’s proposal to embrace the cryptocurrency.

At that time, lawmakers voted in favour of the move to create a law to adopt Bitcoin, despite concern about the potential impact on El Salvador’s program with the International Monetary Fund. Under the law, Bitcoin was set to be accepted by firms when provided as payment for goods and services. Additionally, tax contributions were set to be able to be paid in the cryptocurrency.

El Salvador’s implementation of Bitcoin By adopting Bitcoin as a legal tender, the government intends to promote financial inclusion, facilitate more effective remittance payments, as well as attract financial innovation. The introduction of the current initiative focuses on providing public access to data on the country’s BTC investments via a specialised mempool. Also, the launch of the platform supports El Salvador’s mission to improve the financial transparency of government operations, while also delivering access to data in regards to the country’s BTC investments. Furthermore, the website reveals that the government acquired an additional 31 BTC in April 2024 and 7 BTC at the beginning of May 2024.

The current move aligns with the lawmakers’ development strategy introduced in November 2022, in which El Salvador intends to accumulate one bitcoin per day. The dynamic expansion in Bitcoin reserves aims to allow El Salvador to solidify its position in blockchain and cryptocurrency technology. In addition, the launch of the online platform supports the country’s strategic initiatives towards becoming an innovative nation within the next few decades, fuelled by Bitcoin adoption.

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