El Salvador adds 1 Bitcoin to reserves, following a recent $1.06M purchase as part of its daily strategy.
The IMF deal alters Bitcoin tax and business rules, but El Salvador reaffirms commitment to cryptocurrency policies.
With 5,995 Bitcoin, El Salvador plans to acquire 20,000 more, solidifying its role in the global crypto landscape.
El Salvador added one Bitcoin yesterday to its national reserves as part of its daily purchase strategy. Over the past one week, the country has purchased 29 BTC, bringing its total holdings to 5,995BTC.
https://twitter.com/BitcoinMagazine/status/1871019561962864873
This follows an earlier acquisition of 11 Bitcoin worth $1.06 million. The Central American nation continues to expand its Bitcoin holdings despite adjustments influenced by an agreement with the International Monetary Fund (IMF).
Increasing Bitcoin Reserves
The country’s total Bitcoin holdings now stand at 5,995, valued at over $562 million based on current market prices. El Salvador’s ongoing acquisitions are part of a broader plan to purchase 20,000 additional Bitcoin. Achieving this goal would elevate the country’s total reserves to approximately 26,000 Bitcoin, reinforcing its position as a major institutional holder.
The country adopted Bitcoin as legal tender in September 2021 and has consistently increased its holdings. By purchasing during market downturns, the government has secured assets at lower prices, resulting in unrealized gains as market conditions improve.
IMF Agreement Introduces Policy Changes
The recent IMF deal, valued at $1.4 billion, introduces new terms for El Salvador's Bitcoin policies. Under the agreement, tax payments are restricted to U.S. dollars, diverging from the earlier policy that allowed Bitcoin transactions across all sectors. Additionally, private businesses will no longer be required to accept Bitcoin, though they may still choose to do so.
These adjustments aim to address the IMF's concerns about financial stability. However, the IMF has acknowledged that many of its earlier warnings about El Salvador’s Bitcoin experiment have not materialized.
Commitment to Cryptocurrency Adoption
Despite these changes, El Salvador remains steadfast in its cryptocurrency strategy. The government’s daily Bitcoin purchases underline its determination to maintain autonomy over its Bitcoin policy. This move also reaffirms its commitment to positioning the nation as a global leader in cryptocurrency adoption.
El Salvador recently hosted an international cryptocurrency conference, attracting attention from industry leaders worldwide. The event emphasized the nation’s growing influence in the global cryptocurrency landscape as it continues to strengthen its Bitcoin strategy.
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