El Salvador is continually bullish on Bitcoin as the country moves further in its Bitcoin strategy, commencing Bitcoin mining. Under the leadership of president Nayib Bukele, the country became the first to legalize Bitcoin as a legal tender. Now, the government has begun Bitcoin mining using volcanic energy.
El Salvador commences Bitcoin Mining
The El Salvador president and Bitcoin bull announced the latest Bitcoin-related development in the country. According to Bukele, El Salvador has officially kick-started Bitcoin mining despite that the testing and installation phase is still going on. Bukele took to Twitter to reveal the move to Bitcoin mining in El Salvador on the 1st of October.
When El Salvador passed the Bitcoin bill in June, Bukele mentioned Bitcoin mining as one of his missions as the president. The Bitcoin mining infrastructure will also serve as another stream of revenue for the Central American country. It appears that El Salvador might be the new home for BTC miners with the ongoing China crackdown and increasing demand for clean Bitcoin mining.
China has repeatedly warned its citizens to avoid cryptocurrency claiming that the digital yuan is the answer to virtual money. The country is forcing crypto miners out as well as clamping down on crypto exchanges.
According to the deputy director of the Financial Consumer Rights Protection Bureau of the People’s Bank of China (PBoC), Yin Youping, cryptocurrencies are speculative assets. The deputy director also warned citizens to “protect their pockets.” More recently, the PBoC wrote that it would ban any financial institution or internet platform that engages in crypto trading. However, El Salvador can seize this opportunity to welcome miners, hence, increasing its revenue. Aside from creating a new revenue path, the mining industry would lead to more job opportunities in the jurisdiction.
El Salvador’s Treasury holds over 400 BTC
El Salvador is taking advantage of the Bitcoin dip, and the country now holds more than 400 BTC in its treasury. In addition, Bukele noted that there is a plan to buy more Bitcoin during market dips.
After making history early last month to officially accept Bitcoin, El Salvador’s Bitcoin wallet Chivo has seen millions of downloads. The Chivo wallet accompanies Bitcoin legalization to aid swift cross-border crypto transactions. The virtual wallet is available on both androids and iPhones. As of the 25th of September, Bukele said that 2.1 million Salvadorans were actively using the Chivo wallet. At the time, the Bitcoin fan added that the virtual wallet had more users than any bank in El Salvador. In a more recent tweet, Bukele revealed that 2.73 million people are now using the Chivo wallet. The president added: