Ongoing Bitcoin Accumulation Despite IMF Agreement
El Salvador is continuing its strategy of accumulating Bitcoin, even after recently securing a $1.4 billion loan agreement with the International Monetary Fund (IMF). The agreement includes changes to its approach to Bitcoin, such as allowing merchants to voluntarily accept the cryptocurrency instead of mandating its use. Additionally, the government’s involvement in Bitcoin-related initiatives will be limited. However, the final approval of this agreement depends on the IMF's Executive Board.
New Addition to Reserves: 11 Bitcoins
The Salvadoran government has recently purchased 11 Bitcoins worth over $1 million, adding to its strategic reserve. Since 2021, the country has accumulated a total of 6,203 Bitcoins, with an estimated market value of $554 million. The National Bitcoin Office confirmed the government’s plan to purchase at least one Bitcoin daily, reaffirming its commitment not to sell any Bitcoins or other assets.
Alongside these investments, the government plans to gradually withdraw from directly managing the state-backed Chivo wallet. Meanwhile, the country has clarified that taxes will continue to be paid in U.S. dollars, the nation’s official currency.
Salvadorans Remain Skeptical About Bitcoin
Mixed Opinions on Cryptocurrency Adoption
Despite the government’s ongoing Bitcoin purchases, adoption among Salvadoran citizens remains a contentious issue. Max Keiser, President Nayib Bukele’s Bitcoin advisor, emphasized that using the cryptocurrency in the country has always been voluntary and its popularity is growing.
However, a recent survey revealed that 92% of Salvadorans still do not use Bitcoin for daily transactions. While this marks a slight improvement from 88% the previous year, it highlights the persistent skepticism toward cryptocurrency in the country.
Conclusion
El Salvador continues to invest in Bitcoin, strengthening its position in the cryptocurrency market. However, the low adoption rate among citizens underscores the challenges of implementing nationwide cryptocurrency adoption.
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