The government of El Salvador is taking an important leap towards transparency of the cryptocurrency assets held by the country, which was the first in the world to declare Bitcoin legal tender in September 2021.
The National Bitcoin Office (ONBTC), an entity that was created in El Salvador to oversee all plans, projects and programs related to the leading cryptocurrency, recently announced the launching a mempool explorer, a space where people will be able to track Bitcoin treasury operations carried out by the national government, as well as explore other statistics related to the holdings of this digital asset.
The launch of this space represents a major milestone in transparency of Bitcoin holdings and reserves From El Salvador.
El Salvador, which started investing in Bitcoin in 2021, had been heavily criticized for the opacity and lack of transparency that existed regarding the size of its actual holdings of the cryptocurrency. However, in March of this year, Nayib Bukele, the country's president, changed the situation, making public the Bitcoin wallet address where El Salvador's bitcoins are stored. This way, people can track and observe in real time how many BTC the nation owns.
What is a mempool?
A mempool is a temporary storage space for Bitcoin transactions pending processing by a blockchain node. This space also functions as an explorer in which people can observe different metrics about cryptocurrency and blockchain operations, such as commission rates, pending operations to be validated by a node, recently processed blocks, and the rate of network hash.
In the case of the mempool explorer presented by ONBTC, this shows different data, from the on-chain transaction fee, to El Salvador's Bitcoin treasury reserves.
5.748 bitcoins, to date
According to the data observed in the mempool version of El Salvador, the nation currently has a total of 5.748,76 BTC. With the crypto industry's leading cryptocurrency trading above $62.500 per unit, the country's current BTC reserve holdings exceed $ 359 million dollars.
The mempool data also shows that the nation has been buying 1 Bitcoin per day, as Bukele announced on March 15.
The president publicly committed to resuming the investment strategy that the country had implemented in 2022, making recurring purchases of the cryptocurrency, at a rate of 1 BTC daily, indefinitely.
El Salvador's actions, in relation to Bitcoin, demonstrate the firm commitment that the nation has as a pioneer of the development and financial innovation of cryptocurrencies in the region.
The launch of its own version of mempool provides unprecedented transparency between governments that own and maintain cryptocurrency reserves. In the case of the country, people will not only see the actual Bitcoin holdings that El Salvador accumulates, but they will also be able to observe the nation's recurring purchases of the cryptocurrency, increasing financial transparency and reducing the risk of corruption.
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