El Salvador made history in 2021 by becoming the first country to adopt Bitcoin as legal tender. Since then, the country has continued to invest in Bitcoin, with its reserve currently standing at 5,980 BTC, valued at approximately $580 million.¹
Despite the International Monetary Fund's (IMF) concerns about the volatility of Bitcoin, El Salvador has remained committed to its Bitcoin strategy. In December 2024, the country secured a $1.4 billion financing agreement with the IMF, which includes provisions to limit government involvement in Bitcoin and cryptocurrency-related activities.² However, this did not stop El Salvador from purchasing an additional 11 Bitcoins, worth around $1 million, just a day after the agreement was signed.
The Bitcoin Office has announced plans to accelerate its purchases in the coming months, with the director, Stacy Herbert, stating that "BTC remains our main strategy". This move is seen as a challenge to the IMF's restrictions and a demonstration of El Salvador's commitment to its Bitcoin experiment.
The Impact of El Salvador's Bitcoin Reserve
El Salvador's Bitcoin reserve has been a subject of interest and debate. While some critics argue that the reserve's volatility poses significant risks to the country's financial stability, others see it as a bold experiment that could potentially attract foreign investment and promote economic growth.³
The adoption of Bitcoin has also led to an increase in tourism, with President Nayib Bukele crediting the Bitcoin law with fueling a 95% increase in tourism. However, the use of Bitcoin in everyday transactions remains limited, with only an estimated 1.3% of remittances being transferred using cryptocurrencies in 2023.
The Future of El Salvador's Bitcoin Reserve
As El Salvador continues to invest in Bitcoin, the country's reserve is likely to remain a topic of interest and debate. While the IMF's restrictions may limit the government's involvement in Bitcoin-related activities, it is clear that El Salvador remains committed to its Bitcoin strategy.
Only time will tell if El Salvador's bold experiment will pay off, but one thing is certain – the country's commitment to Bitcoin has already made it a leader in the cryptocurrency space.
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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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According to Odaily, El Salvador's Bitcoin Office announced on the X platform that it has transferred $1 million worth of Bitcoin into the country's strategic Bitcoin reserves. Earlier reports indicated that at 8:07 AM UTC+8, a wallet address associated with El Salvador purchased 11 Bitcoins valued at $1.07 million to bolster its strategic Bitcoin holdings.This move underscores El Salvador's ongoing commitment to integrating Bitcoin into its national financial strategy. The purchase aligns with the country's broader efforts to leverage cryptocurrency as a tool for economic development and financial inclusion. By increasing its Bitcoin reserves, El Salvador aims to strengthen its position in the global cryptocurrency market and potentially benefit from future price appreciations. El Salvador's decision to invest in Bitcoin has been closely watched by both supporters and critics of cryptocurrency. Proponents argue that such investments can provide a hedge against inflation and currency devaluation, while critics caution about the volatility and risks associated with digital assets. Nonetheless, El Salvador continues to pursue its Bitcoin strategy, reflecting its confidence in the long-term potential of cryptocurrency.

El Salvador's Bitcoin Office has made another bold move, transferring $1 million worth of $BTC into the country’s strategic reserves. According to Odaily, this action follows an earlier purchase of 11 Bitcoins, valued at $1.07 million, at 8:07 AM UTC+8. This continued investment demonstrates the nation’s commitment to integrating Bitcoin into its financial framework, with the goal of enhancing economic development and promoting financial inclusion.

This move is part of El Salvador's broader plan to utilize cryptocurrency as a tool for national growth, aiming to solidify its standing in the global crypto market. The government’s ongoing $BTC accumulation strategy is a clear indicator of its belief in the asset’s future potential, despite the volatility surrounding digital currencies.

El Salvador’s Bitcoin investments have sparked significant debate, with supporters viewing them as a hedge against inflation and currency devaluation, while critics point to the risks tied to Bitcoin’s price fluctuations. Nevertheless, the country’s actions reflect its long-term confidence in the value of Bitcoin, making El Salvador a key player in the cryptocurrency world.

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