El Salvador Boosts Bitcoin Holdings Despite IMF Policy Agreement
In a bold move reaffirming its commitment to cryptocurrency, El Salvador has added 12 Bitcoin to its national reserve, even after agreeing to scale back some Bitcoin initiatives as part of a recent deal with the International Monetary Fund (IMF). This latest acquisition underscores the nation’s unwavering support for Bitcoin, despite both domestic criticism and international scrutiny.
El Salvador Maintains Its Bitcoin Vision
El Salvador’s Bitcoin holdings now total 6,044 BTC, valued at approximately $610 million based on the current trading price of $101,000 per Bitcoin, according to CoinGecko. The country recently purchased 11 BTC worth over $1 million on January 19, followed by an additional Bitcoin valued at $106,000 the next day.
These purchases come as Bitcoin achieved a new all-time high of $109,000 on January 20, surpassing its previous record set in December 2024. Notably, this price surge coincided with Donald Trump’s inauguration as the 47th U.S. president, sparking speculation about its influence on market sentiment.
Despite commitments to the IMF, which include reducing government involvement in Bitcoin-related activities and making Bitcoin acceptance voluntary in the private sector, El Salvador continues to strengthen its Bitcoin strategy. The IMF deal was part of a $1.4 billion financing agreement, which also required scaling back the use of the government’s Chivo wallet.
National Bitcoin Office Director Stacy Herbert addressed these policy changes, assuring the public that the government remains dedicated to its broader Bitcoin adoption goals.
“This agreement will not derail our mission to integrate Bitcoin into our economic framework,” Herbert stated.
A Global Trend: Bitcoin as a Strategic Asset
El Salvador’s pioneering Bitcoin law, enacted in September 2021, made the country the first in the world to adopt Bitcoin as legal tender. While this move faced significant domestic criticism—92% of Salvadorans reported not using Bitcoin for transactions in a recent survey—the nation’s holdings have yielded $179 million in profits as of January 20.
El Salvador isn’t alone in its strategic embrace of Bitcoin. Bhutan, the Himalayan kingdom, has also emerged as a significant player in the crypto space. Recent reports from Arkham Intelligence reveal that Bhutan holds approximately $780 million in digital assets, bolstered by years of Bitcoin mining.
These developments highlight a growing global trend of nations incorporating Bitcoin into their financial frameworks, despite challenges. For El Salvador, persistent accumulation underscores its long-term vision of using Bitcoin to drive economic transformation.
Conclusion: Defying Odds, Embracing Bitcoin
As Bitcoin continues to dominate the global stage, El Salvador’s commitment to cryptocurrency remains unshaken. The latest acquisitions demonstrate the government’s determination to integrate Bitcoin into its economy, even as it navigates IMF agreements and domestic skepticism.
El Salvador’s strategy not only sets an example for other nations exploring cryptocurrency adoption but also reinforces the potential of Bitcoin as a transformative asset in the global economy.
