On January 20, 2025, El Salvador's National Bitcoin Office announced the addition of 12 new bitcoins to its strategic reserves, bringing the total to 6,044 BTC, worth over $617 million. The move comes despite a recent agreement with the International Monetary Fund (IMF) to scale back some of the country's crypto policies in exchange for a $1.4 billion loan.
El Salvador defies the IMF by buying 12 additional bitcoins!
President Nayib Bukele, a staunch supporter of bitcoin, has maintained his pro-crypto stance despite international criticism and pressure. In September 2021, El Salvador became the first country in the world to adopt BTC as legal tender, a move that sparked heated debates both domestically and internationally.
The recent agreement with the IMF included measures such as reducing government involvement in the Chivo crypto wallet and changing the requirement for the private sector to accept bitcoin. However, recent purchase of 12 BTC shows that the Salvadoran government does not intend to abandon its strategy of economic diversification based on cryptocurrencies.
Stacy Herbert, director of the National Bitcoin Office, reiterated that the country's plans for bitcoin remain unchanged. She emphasized that the goal is to strengthen national reserves and take advantage of the rise in the value of BTC, which recently reached a new all-time high of $109,000.
Are Salvadorans not interested in BTC?
Despite the potential benefits, large-scale bitcoin adoption in El Salvador remains controversial. A survey conducted in October 2024 found that 92% of Salvadorans do not use BTC for daily transactions, an increase from a 2023 survey that showed 88% of respondents did not use cryptocurrencies.
The purchase of these 12 new BTCs by El Salvador therefore illustrates the country's determination to pursue its pro-bitcoin policy, despite challenges and external pressures. This strategy could have significant implications for the Salvadoran economy and for the global adoption of cryptocurrencies.
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