Douglas Rodriguez, the Chief of El Salvador’s Central Bank, has reported that the country will continue to invest in Bitcoin with the prediction that the digital currency will transcend the reputation of a volatile asset to become a payments system at a global level. Speaking with Bloomberg, Rodriguez offered that he sees no risk in the Latin American country continuing to add Bitcoin to its national holdings. He said that he believes that, in time, Bitcoin will “become a payment system, a system for financial inclusion.”
El Salvador continues to lead the charge of national Bitcoin ownership with the latest purchase of 420 Bitcoin added to the country’s holdings. The President of El Salvador Nayib Bukele announced that the country “bought the dip“, making the “long wait” worthwhile. Soon thereafter, he tweeted that the Bitcoin purchased is already profitable – with the value growing just under 0.5%, but growing by nearly $100, 000 UD in the short space of time.
Hahaha we’re already making a profit of the #bitcoin we just bought.
— Nayib Bukele 🇸🇻 (@nayibbukele) October 27, 2021
The latest addition to El Salvador’s holdings takes the country’s Bitcoin ownership to 1,120 Bitcoin – which is worth nearly $90 million USD. The first time the national government of El Salvador bought Bitcoin was in early September – when it bought two sums of 200 Bitcoin per purchase. The next day, the country took 150 Bitcoin into its holdings. As it made Bitcoin legal, El Salvador was holding 550 Bitcoin and two weeks later it added a further 150 Bitcoin to its total holdings.
El Salvador and Bitcoin security
There seems to be a mixed opinion on the country’s Bitcoin holdings and its security of storage. With private key storage a key concern, there are users expressing worries about what might happen if the nation’s wallet was to be hacked and whether the Bitcoin would be safe. Concerns stem from the disclosure from the president and how openly he has stated the country’s holdings. However, if the right measures are put in place, Bitcoin’s security will hold up against an attack and El Salvador’s stash of Bitcoin will remain safe.
Bitcoin – heading for a legitimate method of tender and payment
Is El Salvador’s Bitcoin holdings cause for United States concern?
While he might not be worried about the security of El Salvador’s Bitcoin, Bitcoin bull Anthony “Pomp” Pompliano has expressed concern about the fact that the Latin American country is starting to beat the United States in Bitcoin ownership. Looking ahead to a future of digital ownership and cryptocurrency integration, Pomp stated that he believes that the next “competition” will regard Bitcoin holdings rather than any weaponry. He tweeted:
It is absurd that the United States is being outcompeted by El Salvador for who owns more bitcoin.
Our national policy should be to match every single BTC purchase that is made by a foreign government.
The next competition won’t be number of nukes, but how much bitcoin you own.
— Pomp 🌪 (@APompliano) October 27, 2021
The exact amount of Bitcoin that the Unites States government is holding is not a disclosed detail. The country has seized illicit Bitcoin and kept some of the digital coins in the custody of U.S. law enforcement while selling others in public auctions as conducted by the U.S. Marshals Service. Approximately $1 billion USD worth of Bitcoin has been taken into custody, but the details of those sold and those kept in custody remain closed information.