Key Takeaways:
- New Bitcoin Purchase: El Salvador added 11 BTC ($1 million) to its reserve after securing a $1.4 billion IMF deal, increasing total holdings to 5,980.77 BTC (~$580M).
- IMF Loan Conditions: The IMF agreement requires El Salvador to limit state involvement in Bitcoin activities, including scaling back its Chivo wallet.
- Bitcoin Policy Stance: Despite IMF terms, Bitcoin remains legal tender, with private sector wallets expected to continue operating.
El Salvador has purchased 11 Bitcoin worth approximately $1 million, just a day after securing a $1.4 billion financing deal with the International Monetary Fund (IMF).
This acquisition, confirmed by the National Bitcoin Office on December 19, increases the country’s Bitcoin reserves to 5,980.77 BTC, valued at roughly $580 million at current prices.
🇸🇻We just transferred over a million dollars worth of Bitcoin to our Strategic Bitcoin Reserve. pic.twitter.com/4ZrxGw9Od0
— The Bitcoin Office (@bitcoinofficesv) December 20, 2024
The purchase diverges from President Nayib Bukele’s previous policy of acquiring “one Bitcoin daily,” which began in November 2022.
National Bitcoin Office Director Stacy Herbert hinted at an accelerated pace of future Bitcoin acquisitions.
The IMF agreement requires El Salvador to reduce public sector involvement in Bitcoin-related activities, ensure private sector participation remains voluntary, and phase out the government-backed Chivo crypto wallet.
Tax payments will also be limited to U.S. dollars.
Despite these conditions, Bitcoin will remain legal tender in El Salvador.
Private sector wallets are expected to continue operating, even as the government reduces its crypto-related initiatives.
JUST IN: El Salvador buys 11 #bitcoin worth over $1 million for their Strategic Bitcoin Reserve 🇸🇻 pic.twitter.com/Xf04fIH4Jx
— Bitcoin Magazine (@BitcoinMagazine) December 20, 2024
This financing agreement ends four years of negotiations with the IMF, which had expressed concerns about the economic risks of El Salvador’s pro-Bitcoin policies.
The country made history in 2021 as the first to adopt Bitcoin as legal tender, shaping its distinctive economic strategy.
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