In a dramatic gesture to strengthen its stance on Bitcoin, El Salvador purchased 11 BTC for its national reserves, which currently stand at 6,044 units.
The move follows a $1.4 billion agreement with the International Monetary Fund (IMF), the terms of which include a reduction in certain policies regarding Bitcoin. Still, the Central American country has not budged on the cryptocurrency.
The IMF agreement brings modern challenges
The IMF loan agreement comes with several strings. El Salvador has agreed to make Bitcoin acceptance voluntary by the private sector – a step back from an earlier directive requiring businesses to accept the cryptocurrency.
The state also intends to limit its presence in the Chivo wallet, a government-owned wallet intended for apply in Bitcoin. These concessions appear to address concerns expressed by the IMF, but did not cause the country to stop purchasing more Bitcoin.
Source: El Salvador National Bitcoin Office
This fine balance between meeting IMF requirements and adhering to a Bitcoin-based financial plan indicates how earnest the government is when it comes to uniquely positioning itself in the global adoption of cryptocurrencies. It’s a balancing act. El Salvador seems ready for an ace.
A dedicated vision for Bitcoin
However, in the face of these warnings, the National Bitcoin Office in El Salvador has reaffirmed its interest in Bitcoin. There was even mention of the possibility of getting more, and faster than before. An unwavering vision shows that the government believes that Bitcoin has a future. This is something that is an integral part of his financial vision.
BTCUSD trading at $104,319 on the 24-hour chart: TradingView.com
El Salvador’s total assets 6044 BTCaccording to the National Bitcoin Office portfolio tracker, or approximately $610 million. CoinGecko reports that the cryptocurrency is currently trading at around $101,350.
The National Bitcoin Office said in a Jan. 19 post that it had acquired an additional 11 Bitcoins as part of its strategic bitcoin hoard worth more than $1 million. On January 20, he also bought one Bitcoin for $106,000.
El Salvador Adds Another 11 BTC to Our Strategic Bitcoin Reserve!
— Bitcoin Office (@bitcoinofficesv) January 20, 2025
President Nayib Bukele’s administration has been very vocal about its ambitions to integrate Bitcoin into everyday financial activities. Critics say it is not a sustainable solution in the long term, while supporters believe it is a revolutionary step towards economic innovation.
Image: La Prensa Gráfica
Bitcoin in El Salvador’s financial identity
Bitcoin is becoming more than just a basic investment for El Salvador; represents financial independence. The country’s latest acquisition puts the country in a unique position on the international stage and demonstrates that customary banking systems and digital assets can coexist.
Breaking the previous ones highest ever of $108,000, which it reached on December 17, Bitcoin briefly rose above $109,000 on January 20.
Bitcoin’s modern high appeared just before that Donal Trump took office as the 47th president of the United States, Monday.
Featured image from DALL-E, chart from TradingView
