El Salvador marked the fourth anniversary of its Bitcoin law by purchasing 21 BTC
On 7 September, the Salvadoran authorities purchased 21 bitcoins worth approximately $2.3 million, marking the fourth anniversary of the adoption of the law that made bitcoin a legal tender. The purchase was announced by the country's president, Nayib Bukele.
El Salvador became the first country in the world to recognise digital currency as an official payment instrument. The law came into force in 2021 and was an important step towards integrating cryptocurrency into the national economy.
State crypto reserve
According to the authorities, El Salvador's state crypto reserve currently stands at 6,313 BTC (approximately $701 million).
At the end of August, the government distributed these assets across 14 new addresses to increase the level of protection for the reserves and minimise the risks associated with the potential development of quantum computing.
Regular purchases and the authorities' position
Since March 2024, the country has been purchasing 1 bitcoin daily, despite its existing obligations to the International Monetary Fund (IMF).
Last year, El Salvador and the IMF reached an agreement limiting the volume of crypto asset purchases in exchange for a 40-month loan of $1.4 billion.
The IMF insists on reducing the state's participation in cryptocurrency initiatives, pointing to the risks associated with the volatility of digital assets.
Nevertheless, President Bukele has stated that Bitcoin purchases will continue, even though official reports from the Ministry of Finance indicated that the replenishment of reserves had been suspended in February this year.
Mining with geothermal energy
Since 2021, El Salvador has been actively developing Bitcoin mining using renewable energy sources. The country has launched mining using geothermal energy from volcanoes, which allows cryptocurrency to be obtained with minimal carbon emissions.
In October 2023, the national mining pool Lava Pool was presented, combining the capacities of state and private operators.
According to the authorities, the country has mined about 474 BTC in three years, and El Salvador's current share in the global Bitcoin hash rate is 1.1 EH/s.
Prospects for regulation and the crypto ecosystem
El Salvador's experience has become a model for countries that view cryptocurrency as a tool for economic growth and attracting investment. Despite pressure from international financial institutions, the country continues to build a sustainable crypto infrastructure, including regulation, licensing, and government investment in digital assets.
Our support
We assist international companies and start-ups planning to obtain a crypto license in El Salvador.
Our team helps at all stages, from choosing the legal form and preparing documents to submitting applications and interacting with regulators.
If you are considering El Salvador as a jurisdiction for your cryptocurrency business, we will help you launch your operations safely and legally in accordance with local requirements.
