El Salvador Continues to Expand Bitcoin Holdings Despite IMF Restrictions
El Salvador is ramping up its Bitcoin acquisition efforts, even as it adjusts certain policies following an agreement with the International Monetary Fund (IMF). The country’s National Bitcoin Office recently announced the purchase of 11 BTC for approximately $1 million on Dec. 20. This latest acquisition, in addition to the daily purchase of 1 BTC, brings the total for the past week to 18 BTC.
According to on-chain data, El Salvador now holds 5,980.77 BTC, with a total value of around $585.8 million. Since becoming the first country to adopt Bitcoin as legal tender in 2021, El Salvador has been leveraging the digital currency to drive economic innovation and attract global investment.
Despite initial concerns about financial instability, El Salvador has emerged as a pioneer in the digital asset space, showcasing the potential benefits of integrating Bitcoin into its economy.
The recent surge in Bitcoin purchases follows statements from Stacy Herbert, head of the National Bitcoin Office, indicating that the country plans to increase its Bitcoin holdings despite the IMF’s conditions for the $1.4 billion loan. The IMF agreement required El Salvador to reduce public sector involvement in Bitcoin initiatives and make Bitcoin acceptance by private businesses optional rather than mandatory. Tax payments will also continue to be exclusively in US dollars.
However, Herbert reiterated that Bitcoin remains legal tender in the country, underscoring the government’s commitment to expanding its Strategic Bitcoin Reserve and advancing Bitcoin-related programs. These initiatives include educational efforts such as the launch of “Little HODLer” workbooks for elementary students in January 2025, as well as the development of Bitcoin capital markets to attract new investment.
Max Keiser, senior Bitcoin advisor to President Nayib Bukele, dismissed the IMF’s stipulations as largely irrelevant, emphasizing that Bitcoin usage in the country has always been voluntary. Keiser highlighted Bitcoin’s role in savings and real estate transactions and its significance in El Salvador’s economic transformation. He stated, “El Salvador’s success is due to Bitcoin, not the failed policies of the IMF. Salvadorans will never go back to the IMF.”
As El Salvador continues to embrace Bitcoin and expand its digital asset initiatives, the country is poised to further solidify its position as a leading player in the crypto space.