El Salvador Adds 11 More Bitcoin to Reserve After IMF Deal
Estimated Reading Time: 2 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
El Salvador, a Central American country, has added 11 Bitcoin to its national BTC reserves after reaching a $1.4 billion funding accord with the International Monetary Fund (IMF).
The agreement contains limitations that keep Bitcoin’s legal tender status while limiting government intervention in its affairs.
Recent Bitcoin Purchase
El Salvador purchased $1 million in Bitcoin on December 19th, which amounted to 11 coins. This boosts the nation’s total Bitcoin holdings to 5,980.77 coins, worth approximately $580 million.
However, this purchase does not align with the government’s earlier “one Bitcoin per day” strategy introduced by President Nayib Bukele in November 2022. But Stacy Herbert, head of the National Bitcoin Office, on X (formerly Twitter), has hinted that future acquisitions might increase in pace.
This move came shortly after securing the IMF agreement, which requires the government to scale back direct involvement in Bitcoin use. The deal also stipulates that private-sector Bitcoin transactions remain voluntary, taxes must be paid in U.S. dollars, and the state-managed Chivo wallet should be discontinued.
Impact of the IMF Agreement
El Salvador, the first country to adopt Bitcoin as legal tender in 2021, will keep Bitcoin’s legal status intact despite the new restrictions. The government plans to divest from the Chivo wallet, encouraging private companies to take over its services.
While the IMF’s Executive Board is yet to approve the deal, the agreement marks a significant shift in El Salvador’s Bitcoin strategy. Despite restrictions, the government remains committed to acquiring more Bitcoin and holding onto its existing reserves.
El Salvador’s recent Bitcoin purchase showcases its continued commitment to the cryptocurrency, even under stricter guidelines from the IMF. With Bitcoin’s legal status unchanged, the nation is navigating a new balance between its crypto ambitions and international financial obligations.
In order to place winning trades with us via Bybit, you can open an account here.
