El Salvador Adds 8 Bitcoins to Treasury, Total Hits $674M

El Salvador has increased its treasury by 8 BTC and now it has 6,228.18 BTC. The Bitcoin reserves have even risen to be worth $674 million. The step indicates the intention of El Salvador to use Bitcoin, which began in 2021. it is the first country to recognise Bitcoin as legal tender.

Bitcoin Market resistance and accumulation

Such growth is observed during the period of market retaliation at the levels of about 108,000-109,000 US dollars. El Salvador seems to plot, purchase BTC at the time of price consolidation. The recent statistics on TradingView reveal a stable process of the purchase of the Bitcoin in El Salvador. Nevertheless, in spite of the increased number of holdings, 20 percent of Salvadorans practice an active use of the Chivo app.

The Bitcoin plan followed by El Salvador is a long vision. The nation wants to liberalize its financial systems in order to avoid relying on the U.S dollar. In buying a large amount of BTCs, El Salvador is developing itself to be a leader in the use of blockchain. This can lead to an example to other countries who are interested in adopting digital currencies in future.

Difficulties of Bitcoin Usage in El Salvador

The Bitcoin plan of El Salvador is having its issues, including adoption on a local level. In 2021, there was some suspicion when protests were held against the transparency of the move with only 20 percent of the Salvadorans using the government-sponsored app, Chivo. On top of that, the Chivo wallet was also hacked and this further destroyed the confidence people had on the system.

The solution that El Salvador has introduced is threatening the old financial system. Though there is local level of doubt, it is building up international interest. Other countries are keenly observing on how Bitcoin can be incorporated in the national economies. Should this work out, then El Salvador can pioneer the wider used of Bitcoin and other cryptocurrencies as legal tender.

How Bitcoin Will Change El Salvador in the future?

In the future, Bitcoin can be more tanked in the economy of El Salvador. There is a possibility of people gaining more trust to Chivo and other blockchain programs in the future. The rate of adoption might increase as more Salvadorans learn the system. The Bitcoin reserve of El Salvador can also possibly increase with the changing trends of the market and the economical situation in the world.