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Once again, El Salvador demonstrates its commitment to Bitcoin. Just one day after signing a $1.4 billion loan with the IMF, the country has indeed announced the purchase of 11 additional BTC. More details in the paragraphs that follow!
https://twitter.com/bitcoinofficesv/status/1869899405391999015
El Salvador strengthens its BTC reserves despite imposed limits
On December 18, the government of Nayib Bukele concludes a historic agreement with the IMF. This agreement, however, includes restrictions regarding Bitcoin transactions. Specifically, it requires a reduction in public involvement in activities related to the flagship cryptocurrency.
Despite this, the National Bitcoin Office of El Salvador has confirmed it has transferred over 1 million euros in BTC to its strategic reserve. Currently, the total reserves of El Salvador stand at 5,980 BTC. This represents an estimated value of $580 million.
This figure marks the end of the strategy “one BTC per day” announced in 2022. According to Stacy Herbert, director of the Bitcoin Office, the country could even accelerate its purchases in the coming months.
Upcoming challenges for Nayib Bukele’s Bitcoin strategy
The agreement with the IMF also requires that:
- tax payments be made only in US dollars,
- the acceptance of BTC by the private sector remains voluntary.
The government also plans to sell or remove its Chivo wallet, while allowing the private sector to manage the adoption of BTC. Despite these constraints, a spokesperson for the Bitcoin Office stated: “BTC remains our main strategy.”
Risky strategy, but acknowledged! As the crypto community closely follows these developments, the approach of El Salvador could influence other countries to adopt Bitcoin as a key economic tool. Only time will tell!
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Je m’appelle Ariela et j’ai 31 ans. J’oeuvre dans le domaine de la rédaction web depuis maintenant 7 ans. Je n’ai découvert le trading et la cryptomonnaie que depuis quelques années. Mais c’est un univers qui m’intéresse beaucoup. Et les sujets traités au sein de la plateforme me permettent d’en apprendre davantage. Chanteuse à mes heures perdues, je cultive aussi une grande passion pour la musique et la lecture (et les animaux !)
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
