New Delhi, India, September 01, 2025 —El Salvador has announced a significant change in how it manages its Bitcoin reserves, aiming to improve security and maintain transparency. On Friday, the National Bitcoin Office announced it will move all Bitcoin holdings into several new wallets. This move marks an important step in safeguarding the nation’s cryptocurrency assets.
Since adopting Bitcoin as legal tender in 2021, El Salvador has kept much of its reserves in the cryptocurrency. Until now, the government has stored all its Bitcoin in one wallet address. However, officials have decided to split these holdings across several wallets, each containing up to 500 Bitcoins. At current prices, that amounts to about $54 million per wallet.
The total Bitcoin reserves currently stand at approximately $682 million, highlighting the scale of the country’s investment in digital currency. To ensure transparency, the government will also introduce a public dashboard. This platform will allow anyone to monitor the balances held in each wallet in real time, reinforcing El Salvador’s commitment to openness about its crypto holdings.
Officials said the decision to distribute Bitcoin across multiple wallets aims to reduce the risks associated with keeping large amounts of digital currency in one place. Cybersecurity experts warn that digital wallets holding significant sums can become targets for hackers. By spreading the reserves, El Salvador limits the potential damage if one wallet is compromised.
Moreover, this strategy reflects the country’s efforts to improve the management and security of its cryptocurrency portfolio. While Bitcoin remains volatile and carries inherent risks, the government appears determined to protect its assets while maintaining public trust.
El Salvador’s Bitcoin law, passed in 2021, allowed the cryptocurrency to be used alongside the U.S. dollar for everyday transactions. Since then, the country has drawn both praise and criticism from around the world. Supporters say Bitcoin can help promote financial inclusion for people without access to traditional banking. They also believe it could encourage investment and innovation in the country.
On the other hand, critics have expressed concerns about Bitcoin’s price volatility and the lack of clear regulatory frameworks. Some warn the cryptocurrency’s unpredictability could threaten El Salvador’s financial stability. Despite these concerns, the country has continued to buy Bitcoin during market downturns, signaling its strong commitment to the digital currency.
The new wallet strategy shows that El Salvador is taking steps to manage these challenges responsibly. It also highlights the government’s transparency, a critical factor given Bitcoin’s controversial status in global finance.
Financial analysts note that El Salvador’s approach could serve as a model for other countries exploring cryptocurrencies. While many governments remain cautious or even hostile to digital currencies, El Salvador’s experiment demonstrates a way to combine security with openness.
This move aligns with a global trend where holders of digital assets focus more on security. Cyber threats in the cryptocurrency space have increased, and several high-profile thefts have raised alarms worldwide. El Salvador’s plan to use multiple wallets and a public dashboard aims to protect its reserves and provide full visibility of its holdings.
In conclusion, El Salvador’s decision to split its Bitcoin reserves across several wallets represents a key development in its pioneering cryptocurrency journey. This approach strengthens security and transparency, which are essential to maintaining public confidence. As the country continues to navigate the complex world of digital currencies, its actions will be closely watched by financial markets, governments, and crypto enthusiasts worldwide.
