El Salvador has made a notable Bitcoin purchase, acquiring $1 million worth of the cryptocurrency shortly after securing a $1.4 billion financing deal with the International Monetary Fund (IMF), which includes restrictions on the country’s involvement with Bitcoin.
On Dec. 19, the country’s National Bitcoin Office announced via an X post that it had transferred over $1 million worth of Bitcoin into its Strategic Bitcoin Reserve. The office’s website confirmed the addition of 11 BTC, boosting El Salvador’s total holdings to approximately 5,980.77 BTC. With Bitcoin trading around $97,000, the country’s total reserve is valued at approximately $580 million.
This recent purchase deviates from the “one Bitcoin per day” strategy initiated by President Nayib Bukele in November 2022. However, National Bitcoin Office Director Stacy Herbert hinted at potentially accelerating acquisitions, stating on Dec. 19 that El Salvador remains committed to expanding its Bitcoin reserve.
The move comes just a day after the Salvadoran government finalized an agreement with the IMF to receive $1.4 billion over 40 months. As part of the deal, the IMF requested that El Salvador scale back its government-led Bitcoin activities. This includes limiting Bitcoin transactions, curbing purchases, and ensuring private sector use of Bitcoin remains voluntary. Additionally, taxes will only be payable in U.S. dollars, and the government plans to either sell or phase out its Chivo crypto wallet.
Despite the IMF’s conditions, a National Bitcoin Office spokesperson reaffirmed the country’s dedication to Bitcoin. They stated El Salvador would continue its daily Bitcoin purchases, potentially increasing the pace in the future, and assured that no current holdings would be sold.
El Salvador made history in September 2021 by becoming the first country to adopt Bitcoin as legal tender. Herbert emphasized that Bitcoin will maintain its legal tender status and expressed optimism about private-sector Bitcoin wallets taking a larger role in serving the nation’s needs as the government scales back its involvement in the Chivo wallet.
The IMF’s Executive Board must still approve the agreement, marking the conclusion of four years of negotiations complicated by Bukele’s Bitcoin policies. The IMF had previously warned that such policies posed economic risks to the country.
For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble
What is your opinion on this particular topic? Leave us your comment below! We are always interested in your opinion!
