Key Takeaways:
- El Salvador just bought 11 Bitcoin, worth over $1 million, right after securing a $1.4 billion loan from the IMF.
- The country remains committed to its Bitcoin strategy, planning to buy more and hold its current reserves.
- El Salvador’s Bitcoin stash now stands at 5,980.77 BTC, worth around $580 million.
El Salvador Makes a Bold Move
El Salvador has done it again. On December 19, 2024, the country purchased 11 Bitcoin worth over $1 million. What’s surprising is the timing. Just one day earlier, El Salvador finalized a $1.4 billion loan deal with the International Monetary Fund (IMF).
Here’s the twist. That IMF deal came with strings attached, including rules limiting Bitcoin-related activities by the government. So, was this a calculated challenge to the IMF? Or simply El Salvador sticking to its long-term Bitcoin vision?
Buying Bitcoin After the IMF Agreement
El Salvador’s National Bitcoin Office shared the news on X (formerly Twitter). They revealed that the country allocated over $1 million to purchase 11 Bitcoin for its Strategic Bitcoin Reserve.
This broke the pattern President Nayib Bukele started in November 2022. Back then, he committed to buying “one Bitcoin a day.”
Quick Overview of El Salvador’s Bitcoin Holdings:
| Details | Figures |
| Total Bitcoin Held | 5,980.77 BTC |
| Total Value | $580 million |
| Purchase Price | ~$97,000 per BTC |
| Latest Purchase | $1 million (11 BTC) |
Stacy Herbert, head of El Salvador’s National Bitcoin Office, confirmed the government’s plans. She hinted that they might buy Bitcoin at a faster pace in the future.
More News: El Salvador Welcomes Bitget: A New Milestone in Crypto
IMF’s Conditions: A Hurdle for Bitcoin?
The $1.4 billion IMF loan, signed on Dec 18, came with restrictions. These included:
- Limiting Bitcoin transactions by the government.
- Making Bitcoin acceptance optional for private businesses.
- Collecting taxes only in U.S. dollars.
- Ending government involvement in the Chivo wallet.
The International Monetary Fund (IMF)
But El Salvador doesn’t seem bothered. A spokesperson from the Bitcoin Office reiterated that the country will keep buying Bitcoin. They also confirmed that no Bitcoin from their reserves will be sold.
Staying Committed to Bitcoin
El Salvador’s decision to buy more Bitcoin shows its unwavering commitment. Back in September 2021, the country became the first in the world to adopt Bitcoin as legal tender.
Even with repeated warnings from the IMF, El Salvador isn’t backing down. Stacy Herbert emphasized that Bitcoin will remain legal tender. The government plans to either sell or shut down the Chivo wallet. Meanwhile, private Bitcoin wallets will continue to operate in the country.
Lessons
El Salvador’s actions highlight some key lessons:
- Strong Belief: The government truly believes in Bitcoin’s potential.
- Financial Independence: El Salvador is aiming for less reliance on international financial institutions.
- Calculated Risk: The country knows the risks but is willing to take them.