El Salvador’s $383M Bitcoin Holdings Rise As New BTC Bank Proposal Fuels Adoption

By crypto.ro global
about 1 month ago

Key Points

  • El Salvador now holds almost $5,783 BTC worth about $383 million.
  • A new Bitcoin bank proposal could offer new financing options to BTC investors.

El Salvador, the first country that adopted Bitcoin as a legal tender back in 2021, now holds almost 5,783 Bitcoin in its reserve, worth about $383 million.

The country’s online Bitcoin Treasury, launched recently, offers real-time data regarding the country’s Bitcoin reserves.

El Salvador BTC reserves
El Salvador BTC reserves

To mine BTC, the country uses a volcano-fueled geothermal power plant at Tecapa Volcano.

According to recent reports, the geothermal power plants generate 102 megawatts of electricity, of which 1.5 megawatts are used for the process of Bitcoin mining.

The innovative use of geothermal energy for BTC mining marks an important development in the crypto industry and proves the high potential for renewable energy sources in crypto mining.

Now, the country is boosting its Bitcoin support with the latest proposal.

Bitcoin bank proposal is heating up in El Salvador

According to the latest reports, El Salvador’s president Nayib Bukele proposed establishing a private investment bank within the nation. If approved, it will offer Bitcoin investors access to financial services and less restrictions compared to traditional banks.

Salvadorean Ambassador to the United States Milena Mayorga shared a post via X, saying that as part of their economic plan for the country, they are proposing a BPI, Bank for Private Investment, where they can diversify the financing options offered to potential investors in both dollars and BTC.

Senior Bitcoin advisor to Bukele said that the President hit the ground running in the new term with new legislation establishing a Bitcoin Bank.

He also noted that Ark Invest’s CEO Cathie Wood’s recent forecast that the country’s real GDP could scale 10-fold during the next five years could become a reality.

According to recent reports, the Bank for Private Investment in El Salvador will not face the same stringent laws like the ones faced by traditional banks including restrictions on engaging with overseas banks or finance companies linked to their shareholders or in a business group. Also, loan restrictions will be eliminated as well.

If approved the new private investments should be created with a minimum share capital of $50 million and they would need at least two shareholders who may be foreigners.

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