El Salvador made headlines once again as it announced its ownership of 5,750 Bitcoin (BTC), which is worth approximately $353 million based on current market prices. According to To Bloomberg.
This revelation comes after the National Bitcoin Office launched a tracking website, developed in collaboration with mempool.space, to provide transparency regarding the handling of Bitcoin. Treasury's BTC holdings.
El Salvador Adopts Bitcoin Amid Criticism
Central American country, led by President Nayeb BukeleIt made history in 2021 when it became the first country in the world to adopt Bitcoin as legal tender.
But the move faced criticism from international entities such as the International Monetary Fund, which expressed concerns about potential risks to financial stability.
Undeterred by the criticism, Bukele began buying Bitcoin using it Public funds last year. In a strategic move to mitigate security risks, a significant portion of the country's Bitcoin holdings have been moved to a cold wallet, reducing exposure to hacking attempts and ensuring the safety of the country's digital assets.
IMF independence looming?
Venture capitalist Tim Draper, known for his investments in cryptocurrencies, recently shared his thoughts on El Salvador's leading position in an interview on the Web3 Deep Dive channel.
Draper I expressed His outlook is positive, suggesting that if the price of Bitcoin reaches $100,000, El Salvador will be able to repay its debts to the International Monetary Fund (IMF) and possibly sever ties with the organization indefinitely.
The venture capitalist also speculated that the nation could emerge as one of the “most attractive destinations worldwide” due to its progressive approach to dealing with… Cryptocurrency adoption.
Draper also addressed resistance countries and individuals who are hesitant to embrace the face of cryptocurrency. He attributed this hesitation to the desire for control and aversion to change.
In a subtle criticism of the United States, the billionaire venture capitalist stressed that El Salvador's commitment to innovation and pioneering spirit sets it apart, positioning it as a beacon of progress on the global scene.
The leading cryptocurrency is currently struggling to establish a sustainable position above the crucial resistance level of $64,000. This level is of great importance because it directly impacts Bitcoin's ability to achieve further upward momentum and a potential retest of its previous all-time high (ATH) of $73,700, which was achieved on March 14.
The coming months will highlight the impact the approval of exchange-traded fund (ETF) markets in Hong Kong and the US will have on the price of Bitcoin, especially with growing recognition and interest from institutional investors.
Featured image from Shutterstock, chart from TradingView.com