El Salvador Continues to Embrace Bitcoin Despite IMF Agreement
El Salvador is making headlines once again as it accelerates its Bitcoin acquisition strategy, despite recent policy adjustments made in accordance with an agreement with the International Monetary Fund (IMF).
The National Bitcoin Office of El Salvador recently announced the purchase of 11 BTC for approximately $1 million on December 20th. This purchase, in addition to the daily acquisition of 1 BTC, brings the total for the past week to 18 BTC. The country now holds a total of 5,980.77 BTC, valued at around $585.8 million, according to on-chain data.
Since becoming the first country to adopt Bitcoin as legal tender in 2021, El Salvador has been utilizing the digital currency to foster economic innovation and attract global investment. Despite early concerns about potential financial instability, the nation has emerged as a pioneer in the digital asset space.
The recent surge in Bitcoin purchases comes on the heels of remarks from Stacy Herbert, head of the National Bitcoin Office, indicating that El Salvador intends to ramp up its Bitcoin acquisitions despite the conditions set forth by the IMF for a $1.4 billion loan.
The IMF agreement called for a reduction in public sector involvement in Bitcoin-related initiatives, making Bitcoin acceptance by private businesses optional rather than mandatory, and maintaining tax payments 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 campaigns, such as the upcoming launch of “Little HODLer” workbooks for elementary students in January 2025. Additionally, El Salvador will continue to develop Bitcoin capital markets to attract new investments.
Max Keiser, senior Bitcoin advisor to President Nayib Bukele, dismissed the IMF’s stipulations as inconsequential, noting that Bitcoin usage in the country has always been voluntary. Keiser emphasized Bitcoin’s increasing role in savings and real estate transactions and its significance in El Salvador’s economic evolution. 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.”
Despite the adjustments made in accordance with the IMF agreement, El Salvador’s commitment to Bitcoin as a legal tender and its efforts to leverage the digital currency for economic growth remain steadfast. The country continues to pave the way for other nations looking to embrace the potential of cryptocurrency in their economies.
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