El Salvador buys 11 Bitcoins, worth $1.07 million, highlighting its commitment to crypto.
The move follows a $1.4 funding deal with the IMF and a subsequent BTC dip below $100k.
Stacy Herbert assures that BTC will remain El Salvador’s legal tender, unhindered by the deal.
The International Monetary Fund’s (IMF) $1.4 billion deal could not rein in El Salvador’s Bitcoin ambitions! El Salvador doubles down on its unwavering commitment to crypto by adding 11 Bitcoins to its reserves. This move comes amid a Bitcoin price slump and speculation that the IMF deal would prompt El Salvador to reconsider its Bitcoin strategy.
We just transferred over a million dollars worth of Bitcoin to our Strategic Bitcoin Reserve. pic.twitter.com/4ZrxGw9Od0
— The Bitcoin Office (@bitcoinofficesv) December 20, 2024
In the early hours of December 20, the Bitcoin Office of El Salvador announced the Central American country’s latest BTC purchase. The country bought 11 Bitcoins for around $1.07 million. Currently, the country holds a total of 5,980.77 BTC, worth $579,745,611.
In a recent development, El Salvador entered into a strategic deal with the IMF, agreeing to ease the country’s controversial Bitcoin policies. If approved, the agreement would provide the country’s businesses the right to choose whether to accept Bitcoin as payment. In addition, the proposal also urges the government to reduce its involvement in the Chivo crypto wallet.
Market’s Sharp Reaction to Jerome Powell’s FOMC Speech
The concerns over the potential Bitcoin policy changes in El Salvador, along with Fed Chair Jerome Powell’s comments on crypto, triggered a market correction. Bitcoin, which traded above the significant $100k level, plunged to $96,886 as of press time. Over the last 24 hours, the coin experienced a decline of 4.23% despite a monthly hike of 4.77%.
Meanwhile, Stacy Herbert, director of the National Bitcoin Office, confirmed that Bitcoin would remain the legal tender despite the funding deal. She added that the country would continue purchasing Bitcoin to expand its strategic Bitcoin reserve.
EL SALVADOR SECURES $3.5 FUNDING DEAL
Bitcoin remains legal tenderEl Salvador will continue buying bitcoin (at possibly an accelerated pace) for its Strategic Bitcoin ReserveBitcoin capital markets will continue to be built; for example, the recent tokenized issuance…
— Stacy Herbert 
(@stacyherbert) December 19, 2024
While the IMF deal sparked anxiety, Herbert assured El Salvador would not abandon its crucial Bitcoin projects. The country would further boost its Bitcoin capital markets and build Bitcoin policy and roadmaps. The funding scheme would not impact El Salvador’s Bitcoin education initiatives, such as the Mi Primer Bitcoin and Node Nation syllabus in schools. While the government-backed Chivo wallet will be sold, numerous private-sector Bitcoin wallets will still be available for use in El Salvador.
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