El Salvador has boosted its national Bitcoin reserve by adding 11 Bitcoin for $1 million. The latest investment means the country now holds a total of 5,980 Bitcoin. The purchase comes just days after the country received a $1.4 billion development loan from the International Monetary Fund.
To secure the IMF deal, the country agreed to slow down some of its cryptocurrency policies, particularly those targeting its digital wallet, Chivo. El Salvador agreed to retire or sell its digital wallet.
El Salvador Huge Gains in Reserve Value. Trac Tool Nayib Bukele’s wallet, which was monitoring Bitcoin for unrealized gains of over $125 million. This represents a growth of approximately 91.54% in reserve value. According to tracker, the reserve generates high profits from purchases made during bear markets, when prices were as low as $19,000.
El Salvador Walks the Talk as It Continues to Buy Bitcoin
Although people thought the IMF deal would slow down the country’s pursuit of Bitcoin, it won’t. El Salvador has made it clear that it will continue to buy Bitcoin. El Salvador’s national banker, Stacey Herbert, said on X that Bitcoin will remain legal tender in the Central American country and that the government will continue to add to its strategic reserves.
Earlier, Eugene Epstein, head of trading and structured products for North America at Moneycorp in New Jersey, felt that the Salvadoran announcement was just a PR stunt. He said the announcement may have been a way to counter the negative bounce, but now that they’ve bought in, it means crypto is their way.
There was much speculation when El Salvador agreed to amend its cryptocurrency policies. Some even felt that the IMF was arm-twisting El Salvador to get the development loan they were requesting. However, the latest development is a testament that El Salvador’s journey to accrue Bitcoin continues.
Most people are concerned about the risks associated with BTC and feel that governments adopting cryptocurrencies as legal tender is a big gamble. However, crypto enthusiasts have been encouraging this adoption, insisting that the rewards far outweigh the risks.