According to crypto sources, El Salvador has bought 12 more Bitcoin despite a recent deal with the International Monetary Fund that scaled back some of its crypto ambitions. The National Bitcoin Office announced the purchase on January 19 and 20. The country now reportedly has 6,044 Bitcoin worth over $617 million. As per reports, 11 Bitcoins were bought at the rate of $1 million on January 19, while the next day, one Bitcoin sold for $106,000. The timing, however, was just hours before Donald Trump was sworn into office as the 47th President of the United States, and the Bitcoin market reached $101,000.
Bitcoin Plans Unchanged After IMF Deal
El Salvador’s latest purchase comes after a $1.4 billion deal signed with the International Monetary Fund. The deal agreement involved scaling back some of El Salvador’s pro-Bitcoin policies, making private acceptance of Bitcoin voluntary and removing government intervention from the Chivo wallet or state-sponsored Bitcoin apps.
Despite that, President Nayib Bukele’s government has still maintained a stance on Bitcoin. Stacy Herbert, leader of the National Bitcoin Office in El Salvador, recently tweeted on X, formerly known as Twitter, that – The BTC strategy of the country remains unshaken, and Salvador will continue to be one of the leading nations for BTC adoption in the world.
El Salvador made history; it became the first country to declare BTC as a legal tender. This happened in September 2021. Part of Bukele’s broader scheme was to enable the central economic administration to utilize and incorporate Bitcoin, a “financial inclusion and growth” instrument.
Global Bitcoin Accumulation
The Nayib Bukele portfolio tracker shows the country has made $179 million in profit on El Salvador’s Bitcoin holdings up to January 20. Despite that, adoption by Salvadorans is still very low.
Recent polls show the population is skeptical. A survey in October 2024 found that 92% of Salvadorans don’t use Bitcoin for transactions, up from 88% in a similar 2023 survey. Critics say the government’s focus on Bitcoin hasn’t resonated with the average citizen, who reportedly prefers the US dollar for its stability and familiarity.
El Salvador’s Bitcoin plan is not the lone one in the world. Other countries have also adopted or hoarded Bitcoin. Bhutan, a South Asian country, has been quietly mining Bitcoin for years. A report from Arkham Intelligence found Bhutan had $780 million in digital assets by September 2024.
These are just some of the growing numbers of nations or states interested in Bitcoin, especially those looking to diversify their financial systems or hedge against economic volatility. However, El Salvador is poised to be the leader in this game through its Bitcoin law to get world attention and investment.
Problems Ahead
Although the BTC experiment in El Salvador is getting worldwide coverage, the country is facing its challenges. The critics, among global financial institutions like the IMF, have already been warning of the risk of over-reliance on cryptocurrency. Issues like volatility, cybersecurity threats, and public resistance are just a few hurdles the Bukele government will have to transcend.
However, the Salvadoran government remains all in on Bitcoin. Despite public pressure, the continued accumulation of this currency is proof that they want to be seen as a pioneer nation that will shape this new digital financial landscape.
Conclusion
El Salvador buying 12 more Bitcoins despite the IMF deal is proof of their steadfastness on their Bitcoin plan. With 6,044 BTC in reserves, they remain the leader in state-level cryptocurrency adoption.
Whether this will work or not is still to be seen, but for now, they are at the forefront of the global conversation on Bitcoin in national economies. While Bhutan and others are quietly accumulating digital assets, only time will tell if El Salvador’s bet will pay off or be a warning to others.
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FAQs
1. How many Bitcoins does El Salvador have?
El Salvador reportedly has 6,044 BTC, worth over $617 million as of January 20, 2025.
2. What was the IMF’s stance on El Salvador’s Bitcoin policies?
The IMF, in exchange for a $1.4 billion deal, proposed that El Salvador scale back some of its most aggressive Bitcoin plans, including making private sector acceptance voluntary and reducing government involvement in the Chivo wallet.
3. Why did El Salvador make BTC legal tender?
El Salvador made BTC legal tender in September 2021 to increase financial inclusion, reduce remittance costs and attract global investment.
4. Is any other country adopting BTC like El Salvador?
Yes, Bhutan is also into Bitcoin. Bhutan reportedly has $780 million in digital assets and has been mining Bitcoin for years.
