El Salvador Accelerates Bitcoin Acquisition Strategy
El Salvador is ramping up its Bitcoin acquisition efforts, despite making adjustments to certain policies following discussions with the International Monetary Fund (IMF).
Bitcoin Purchase Announcement
- The National Bitcoin Office in El Salvador disclosed the acquisition of 11 BTC for approximately $1 million on Dec. 20.
- This addition supplements the country’s daily purchase of 1 BTC, bringing the total for the past week to 18 BTC.
Current Bitcoin Holdings
On-chain data reveals that El Salvador currently possesses 5,980.77 BTC, with a total value of around $585.8 million.
Doubling Down on Bitcoin
Despite the IMF’s conditions for a $1.4 billion loan, El Salvador intends to increase its Bitcoin purchases, as confirmed by Stacy Herbert, the head of the National Bitcoin Office.
IMF Agreement
- The IMF agreement required El Salvador to decrease public sector involvement in Bitcoin-related initiatives.
- It also mandated that Bitcoin acceptance by private businesses should be optional rather than mandatory.
- Tax payments will continue to be exclusively in US dollars.
Commitment to Bitcoin
Herbert reiterated that Bitcoin remains legal tender in the country, emphasizing the government’s dedication to expanding its Strategic Bitcoin Reserve and promoting Bitcoin-related programs.
Future Initiatives
- El Salvador plans to launch new “Little HODLer” workbooks for elementary students in January 2025.
- The country will also focus on developing Bitcoin capital markets to attract fresh capital.
Max Keiser, senior Bitcoin advisor to President Nayib Bukele, dismissed the IMF’s demands, highlighting the voluntary nature of Bitcoin usage in the country and its positive impact on savings and real estate transactions.
“El Salvador’s success is attributed to Bitcoin, not the ineffective policies of the IMF. Salvadorans will not revert to the IMF.”
