El Salvador accelerates Bitcoin purchases
The country regularly buys Bitcoins
In the last 24 hours, El Salvador has acquired 5 more BTC, bringing its total Bitcoin reserves to 6,055 BTC, valued at approximately $618.9 million. Despite the fact that only about 8% of the country's population uses Bitcoin for transactions, the government continues to increase its Bitcoin holdings.
El Salvador is accumulating Bitcoin despite restrictions from the International Monetary Fund (IMF). Previously, the country agreed to reduce Bitcoin transactions, make Bitcoin acceptance in the private sector voluntary, and even limit the use of the state-run Chivo wallet in exchange for a $1.4 billion loan.
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The IMF has emphasized that, while many risks have yet to materialize, El Salvador needs to enhance transparency and mitigate potential financial and fiscal stability risks associated with Bitcoin.
Nevertheless, El Salvador continues its purchases. On January 21, the government acquired 12 BTC in just two days, spending over $1 million. At that time, the country’s total Bitcoin holdings stood at 6,044 BTC, meaning its reserves grew by 0.18% in less than two weeks.
Why is El Salvador famous?
El Salvador became the first country in the world to make Bitcoin legal tender on September 7, 2021. At the time, President Nayib Bukele stated that he wanted to include the 70% of the population that does not use banking services in the Bitcoin economy.
Bukele continues to promote Bitcoin accumulation, pushing for the "one Bitcoin a day" policy in 2024. He also blamed opposition leaders for causing individuals to miss out on Bitcoin investments when the price was significantly lower.
Bukele’s leadership in Bitcoin adoption has not gone unnoticed. Tesla CEO Elon Musk has praised El Salvador’s Bitcoin investment strategy, calling it impressive.
Recently, El Salvador’s Legislative Assembly approved amendments to the Bitcoin law that align with the IMF loan agreement and make Bitcoin acceptance optional for private businesses.
