El Salvador has restructured its national Bitcoin reserve by dividing it into 14 different wallets aimed at increasing security.
Strategic Shift in Bitcoin Custody
President Nayib Bukele's government continues to promote Bitcoin as a central economic strategy. Previously, the entire reserve of 6,284 BTC was stored in one address. The new structure reduces loss risk as no wallet holds more than 500 BTC. Officials indicated that using Bitcoin addresses with hashed public keys provides better protection against future cryptographic threats.
IMF Tensions Over Daily Purchases
Despite the National Bitcoin Office's claims of steady accumulation, contradictions exist with official financial disclosures. The central bank governor and finance minister confirmed in a joint statement to the IMF that no Bitcoin has been purchased by the public sector since February. This information conflicts with the office's announcements of daily purchases on social media.
Conclusions
The division of the Bitcoin reserve demonstrates El Salvador's defensive strategy to mitigate concentration risks and future technological threats. However, uncertainty remains regarding whether the nation is truly adding to its holdings as claimed.
El Salvador has taken significant steps towards improving the security of its Bitcoin reserve, but contradictions with international financial organizations raise questions about the transparency of these processes.
