El Salvador, one of the most pro-crypto countries in the world, added 5 BTC to its Bitcoin Reserve on Saturday. The country purchased over $5 million worth of BTC in the past month.
This move comes as El Salvador is modifying its Bitcoin policies to align with conditions set by the International Monetary Fund (IMF).
El Salvador’s Bitcoin Accumulation Continues Amid IMF-Fueled Policy Adjustments
On February 1, El Salvador’s Bitcoin Office confirmed the purchase, pushing the country’s total reserves to approximately 6,055 BTC, valued at over $606 million.
Over the past month alone, the government has acquired around 50.42 BTC, maintaining its steady accumulation since embracing Bitcoin as legal tender in 2021.
However, the country has also recently been making adjustments to its Bitcoin regulatory framework. In December 2024, the government reached an agreement with the IMF for a $1.4 billion loan under the Extended Fund Facility (EFF).
To meet the terms of this deal, the government has adjusted key Bitcoin policies. These include making Bitcoin acceptance optional for businesses, eliminating tax payments in BTC, and gradually phasing out the state-backed Chivo wallet.
This move was unsurprising, considering the IMF has consistently voiced concerns about El Salvador’s Bitcoin adoption, citing risks to financial stability. While these regulatory updates suggest some concessions, the government’s broader Bitcoin strategy remains intact.
Last December, Stacy Herbert, director of the National Bitcoin Office, hinted at an accelerated Bitcoin accumulation plan. She also highlighted initiatives to enhance Bitcoin education and public sector training.
The government official reiterated her stance earlier this year, saying:
“El Salvador will continue buying bitcoin (at possibly an accelerated pace AND at a discounted price) for its Strategic Bitcoin Reserve.”
Unsurprisingly, El Salvador’s pro-Bitcoin stance has attracted major crypto companies to its shores. Stablecoin issuer Tether recently relocated its headquarters to the country, crediting its favorable regulatory climate under President Nayib Bukele.
Shortly after, Bukele encouraged Rumble CEO Chris Pavlovski to consider moving his company to El Salvador as well.
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Oluwapelumi Adejumo
https://beincrypto.com/el-salvador-new-bitcoin-purchase/
2025-02-02 10:37:47
