El Salvador’s Bitcoin Strategy –
Increased Bitcoin Acquisition Strategy by El Salvador
El Salvador has intensified its Bitcoin purchases in recent weeks as part of its long-term strategy. The country now holds approximately 6,055 BTC, valued at over $612 million. In the past month alone, El Salvador added more than 50 BTC to its reserves, demonstrating the government’s determination to strengthen its digital asset holdings despite pressure from the International Monetary Fund (IMF)
This move comes despite the IMF urging the country to reduce its Bitcoin exposure as part of a $1.4 billion loan agreement. However, President Nayib Bukele remains committed to his Bitcoin strategy, with indications that the rate of BTC purchases may increase in the future
IMF Agreement and Adjustments to Bitcoin Policies
As part of the deal with the IMF, the Salvadoran government has implemented several policy changes. Key adjustments include:
- Bitcoin Usage Becomes Optional
Previously, all businesses in El Salvador were required to accept Bitcoin as payment. Under the IMF agreement, Bitcoin usage is now voluntary for merchants and companies - Reduced Government Involvement in Crypto
The government will scale back its role and intervention in the crypto sector, particularly in Bitcoin transactions involving public entities. For example, tax payments in El Salvador can now only be made in U.S. dollars, not Bitcoin - Privatization of Chivo Wallet
Chivo Wallet, the official digital wallet created by the government to accelerate Bitcoin adoption, will now be privatized or phased out. As a result, the private sector will take over the management of digital wallets and Bitcoin-related infrastructure
El Salvador Remains Committed to Bitcoin
Despite having to adjust its Bitcoin policies to meet IMF conditions, El Salvador remains firm in its vision to integrate Bitcoin into its national economic strategy. The country is also developing educational initiatives related to Bitcoin, such as:
- Little HODLer Workbooks, aimed at introducing Bitcoin to younger generations.
- CUBO+ Training, a program designed to train blockchain and Bitcoin technology developers
Additionally, El Salvador has announced that it has no plans to sell its Bitcoin holdings. The country has reportedly gained around 127% on its Bitcoin investment, with an average BTC purchase price of $46,000 per coin
Future Prospects: What to Expect?
Despite the reduced government involvement, El Salvador continues working toward building a Bitcoin-based financial market. One recently announced initiative involves tokenizing government bonds on the Liquid blockchain network, allowing for greater digital investment diversification
Moreover, global regulatory trends and U.S. government policies could impact El Salvador’s Bitcoin strategy. Some U.S. states, such as New Hampshire and North Dakota, are now considering Bitcoin holdings as part of their financial reserves
Conclusion
El Salvador faces significant challenges in maintaining its Bitcoin policies amid IMF pressures but remains committed to strengthening its reserves. With an increasingly aggressive Bitcoin accumulation strategy and ongoing blockchain innovations, the country continues to be a pioneer in national-level crypto adoption.
However, with increasing global regulations and IMF influence, the future of El Salvador’s Bitcoin strategy will depend on market dynamics and international policies. What is certain is that President Nayib Bukele remains determined to establish Bitcoin as a strategic asset for the nation.
