El Salvador has recently added 12 Bitcoin to its reserves, totaling about $1 million, despite a new deal with the International Monetary Fund that requires the country to limit some of its cryptocurrency activities. As of January 20, El Salvador’s total Bitcoin holdings reached 6,044 BTC, worth around $610 million. This purchasing decision comes just after Bitcoin briefly exceeded $109,000, setting a new record. The Salvadoran government had agreed to make Bitcoin use optional for businesses and reduce its direct involvement in the Chivo wallet as part of its agreement with the IMF. Despite the changes, officials maintain that their Bitcoin plans remain unchanged. Interestingly, a survey noted that a significant majority of Salvadorans do not engage in Bitcoin transactions.
El Salvador’s Bold Move: Buying More Bitcoin
El Salvador has recently purchased 12 Bitcoin for its reserve, even after agreeing with the International Monetary Fund (IMF) to reduce some of its cryptocurrency policies. This move highlights the country’s ongoing commitment to Bitcoin, despite facing pressure to lessen its involvement with the digital currency.
On January 19, the National Bitcoin Office in El Salvador announced an acquisition of 11 Bitcoin worth over $1 million. The following day, an additional purchase of 1 Bitcoin was made for approximately $106,000. As of now, El Salvador holds a total of 6,044 Bitcoin, valued at nearly $610 million, as the cryptocurrency trades at around $101,000.
Bitcoin recently reached a new high, surpassing $109,000 on January 20, just before the inauguration of U.S. President Donald Trump. Meanwhile, the government’s earlier agreement with the IMF involved a $1.4 billion financing deal that requires El Salvador to dial back some of its Bitcoin activities, including making Bitcoin use voluntary for the private sector and scaling back its role in the Chivo crypto wallet.
Despite these agreements, El Salvador’s National Bitcoin Office Director, Stacy Herbert, emphasized that the country’s commitment to Bitcoin remains unchanged. In 2021, El Salvador became the first country to adopt Bitcoin as legal tender, ushering in a new era for the cryptocurrency.
Interestingly, an October survey revealed that 92% of Salvadorans do not transact using Bitcoin, an increase from 88% in a previous survey. This statistic could indicate that while the government is investing heavily in Bitcoin, public adoption may still lag behind.
Other nations are also exploring Bitcoin accumulation; for instance, Bhutan has been quietly mining Bitcoin and holds approximately $780 million in digital assets, as recent reports indicate.
Overall, El Salvador’s recent investments reaffirm its dedication to Bitcoin amidst shifting regulatory landscapes and public sentiment.
Tags: El Salvador Bitcoin purchase, Bitcoin news, cryptocurrency trends, IMF agreement, crypto adoption.
What is the recent news about El Salvador and Bitcoin?
El Salvador has bought another 12 Bitcoin to add to its national reserves. This comes even as the country is in talks with the International Monetary Fund (IMF).
Why is El Salvador buying more Bitcoin?
El Salvador believes that having Bitcoin in its reserves will help boost its economy and provide stability, especially since it was the first country to make Bitcoin legal tender.
How much Bitcoin does El Salvador have now?
With this recent purchase, El Salvador now holds a total of 1,370 Bitcoin in its national reserves.
What is the IMF’s stance on El Salvador’s Bitcoin use?
The IMF has expressed concerns about El Salvador’s Bitcoin adoption. The fund wants to make sure that the country has a strong economic plan and financial stability.
How can this affect El Salvador’s economy?
Buying more Bitcoin can be a gamble. If Bitcoin’s value goes up, it may help the economy. However, if its value drops, it could create financial problems for the country.
