El Salvador Continues to Expand Bitcoin Reserves Despite IMF Deal

El Salvador has added 12 more Bitcoin (BTC) to its national reserve, bringing its total holdings to 6,044 BTC, worth over $617 million. This move comes despite the country’s recent agreement with the International Monetary Fund (IMF) to ease certain cryptocurrency policies.
On January 19, El Salvador’s National Bitcoin Office announced the purchase of 11 BTC, valued at approximately $1 million, for its Strategic Bitcoin Reserve. The following day, the country added another Bitcoin, worth around $106,000. With Bitcoin currently trading at about $101,000, El Salvador’s Bitcoin stockpile now stands at nearly $610 million, according to data from CoinGecko.
Bitcoin Hits New Highs
The country’s latest Bitcoin purchase coincided with Bitcoin’s surge above $109,000 on January 20, briefly breaking its previous all-time high of $108,000, which was reached in mid-December. This rise in Bitcoin’s value came just hours before the inauguration of U.S. President Donald Trump, a key moment in the broader crypto landscape.
El Salvador’s Agreement with the IMF
El Salvador's Bitcoin strategy has faced scrutiny in the past, especially from international financial institutions like the IMF. Last month, the country reached a $1.4 billion financing agreement with the IMF, which included stipulations to scale back certain aspects of its Bitcoin policies. As part of this agreement, El Salvador made private-sector Bitcoin acceptance voluntary and began unwinding its government involvement in the Chivo Wallet, the state-backed crypto wallet launched to facilitate Bitcoin transactions.
However, just one day after securing the deal with the IMF, El Salvador made another Bitcoin purchase worth $1 million, signaling that the country’s commitment to its Bitcoin strategy remains intact. Stacy Herbert, Director of the National Bitcoin Office, reiterated in a social media post that El Salvador’s Bitcoin plans had not changed despite the agreement with the IMF.
A Profitable Investment
As of January 20, the value of El Salvador’s Bitcoin holdings has increased by approximately $179 million since their initial purchase. This positive performance stands in contrast to recent surveys indicating that Bitcoin adoption in the country remains limited. An October 2023 survey revealed that 92% of Salvadorans do not use Bitcoin for transactions, a slight increase from 88% in a 2022 survey.
Despite the lack of widespread usage domestically, El Salvador’s strategy has garnered significant attention globally. In 2021, the country became the first in the world to adopt Bitcoin as legal tender, with President Nayib Bukele championing the move as a means to boost financial inclusion and attract investment.
Global Bitcoin Accumulation
El Salvador is not the only country that has made significant moves to accumulate Bitcoin. Bhutan, a small country in South Asia, has been quietly mining Bitcoin for years, building a sizable digital asset portfolio. According to blockchain analytics firm Arkham Intelligence, Bhutan’s holdings were valued at approximately $780 million as of September 2023.
El Salvador’s continued investment in Bitcoin underscores the country’s long-term vision of using cryptocurrency to reshape its financial landscape. While challenges remain in terms of domestic adoption, the country's Bitcoin reserves are performing well and could serve as a key asset in the future.
As Bitcoin’s value continues to rise, countries like El Salvador and Bhutan are positioning themselves as early adopters in the global digital economy. El Salvador’s ongoing commitment to Bitcoin, despite external pressure, highlights the country’s determination to remain at the forefront of the cryptocurrency revolution.
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