El Salvador has recently added 12 Bitcoin to its reserves, valuing over $1 million, despite a deal with the International Monetary Fund (IMF) to reduce its crypto activities. The National Bitcoin Office confirmed the purchases, bringing the country’s total Bitcoin holdings to 6,044, worth nearly $610 million. This comes after President Nayib Bukele’s government agreed to some restrictions on Bitcoin use following a $1.4 billion financing agreement with the IMF. Although many Salvadorans do not actively use Bitcoin for transactions, the country’s Bitcoin stockpile shows a significant profit. Meanwhile, Bhutan has also been accumulating Bitcoin, with about $780 million in digital assets.
El Salvador Increases Bitcoin Holdings Despite IMF Deal
El Salvador continues to make headlines in the cryptocurrency world by purchasing 12 Bitcoin in just two days, even after agreeing to modify its digital asset policies under a deal with the International Monetary Fund (IMF). This bold move comes amid recent shifts in the country’s crypto strategy, reflecting its ongoing commitment to Bitcoin.
On January 19, the National Bitcoin Office of El Salvador announced on X that it acquired 11 Bitcoin for its Strategic Bitcoin Reserve, spending over $1 million. Additionally, on January 20, El Salvador bought another Bitcoin for about $106,000. With these purchases, the country has boosted its total Bitcoin holdings to 6,044 BTC, valued at nearly $610 million, based on current Market prices.
The timing of this surge in Bitcoin investments is noteworthy, particularly as the cryptocurrency briefly rose above $109,000 on January 20, setting a new all-time high shortly before the inauguration of the 47th U.S. president, Donald Trump. President Nayib Bukele’s administration previously established a $1.4 billion financing agreement with the IMF, which involves scaling back some Bitcoin initiatives. Changes included making the acceptance of Bitcoin by businesses voluntary and reducing government involvement with the Chivo crypto wallet.
Despite the new agreement with the IMF, El Salvador has shown continued interest in Bitcoin. National Bitcoin Office Director Stacy Herbert stated that the country’s plans for Bitcoin remain unchanged, highlighting a commitment to the digital currency. El Salvador made history in September 2021 by becoming the first country to adopt Bitcoin as legal tender.
Recent surveys indicate that while many Salvadorans are aware of Bitcoin, a significant percentage, around 92%, do not use it for daily transactions. This figure has increased from 88% in a 2023 survey, suggesting a cautious approach towards digital currency despite the government’s initiatives.
Notably, El Salvador isn’t alone in its Bitcoin pursuits. Bhutan, a country in South Asia, has been quietly mining Bitcoin for years. Reports from blockchain analytics firm Arkham Intelligence revealed that Bhutan holds approximately $780 million in digital assets.
El Salvador’s bold investment strategy and ongoing involvement in Bitcoin will surely keep the nation in the spotlight as it navigates the complexities of cryptocurrency in a changing economic landscape.
Tags: El Salvador, Bitcoin, IMF deal, cryptocurrency, Nayib Bukele, digital assets, Chivo wallet, Bitcoin holdings, Bhutan
What is the news about El Salvador buying more Bitcoin?
El Salvador has announced that it is buying another 12 Bitcoin to add to its national reserves. This move comes even as the country navigates its agreement with the International Monetary Fund (IMF).
Why is this significant for El Salvador?
This is important because El Salvador was the first country to make Bitcoin legal tender. By purchasing more Bitcoin, the government aims to strengthen its financial position and promote the use of cryptocurrency within the country.
What does the IMF think about El Salvador’s Bitcoin purchases?
The IMF has expressed concerns about the use of Bitcoin as legal tender in El Salvador. They worry about the risks associated with volatility and the lack of consumer protections. However, the country continues its strategy despite these concerns.
How does this affect the value of Bitcoin?
When a country buys Bitcoin, it can influence its value. More purchases can create demand and potentially increase the price. However, Bitcoin’s value is also affected by other global Market factors.
What are the potential risks for El Salvador?
Investing heavily in Bitcoin can be risky. The price of Bitcoin can change quickly, which might affect the country’s finances. If the value drops significantly, it could lead to economic challenges for El Salvador.
