Bitcoin Strategy Intact: El Salvador Purchases 12 BTC Despite Policy Adjustments
Despite the deal with the IMF requiring a scale-back of Bitcoin-related initiatives, El Salvador has added 12 more BTC to its strategic reserves, reaffirming its dedication to cryptocurrency.
Continued Commitment to Bitcoin Strategy
El Salvador has continued strengthening its Bitcoin reserves by purchasing 12 additional Bitcoin over two days. This move was confirmed by the country’s National Bitcoin Office even after finalizing a $1.4 billion agreement with the International Monetary Fund (IMF). The deal necessitated scaling back certain Bitcoin initiatives, such as making private-sector acceptance voluntary and reducing government involvement in the Chivo wallet.
Despite these adjustments, the government remains steadfast in its Bitcoin strategy. National Bitcoin Office Director Stacy Herbert affirmed on X (formerly Twitter) that the country’s plans for Bitcoin remain unchanged.
Recent Acquisitions Amid High Market Volatility
On January 19, El Salvador’s National Bitcoin Office announced the purchase of 11 Bitcoin worth over $1 million for its Strategic Bitcoin Reserve. The following day, an additional Bitcoin was acquired for $106,000. These purchases bring the nation’s total Bitcoin holdings to 6,044 BTC, valued at approximately $610 million, according to CoinGecko data.
The broader cryptocurrency market has experienced significant turbulence, with total liquidations surpassing $1.28 billion. Notable altcoins, including Solana and Cardano, faced sharp declines. However, Bitcoin maintained relative stability, even reaching a new all-time high of $109,000 on January 20.
Economic and Political Implications
El Salvador’s Bitcoin strategy has faced criticism from international observers and domestic stakeholders, who argue that funds could be redirected toward urgent social and economic issues. However, President Nayib Bukele’s administration continues to champion Bitcoin as a path to financial sovereignty and long-term economic growth.
The recent surge in Bitcoin’s price has significantly boosted El Salvador’s portfolio. By January 20, the country’s holdings had gained $179 million in value, showcasing the speculative success of Bukele’s high-risk approach.
Global Trends in Bitcoin
El Salvador’s actions align with a broader trend of nations viewing Bitcoin as a strategic asset. For instance, Bhutan has reportedly accumulated $780 million in digital assets through years of mining.
The record-breaking price of Bitcoin has coincided with key global events, including Donald Trump’s swearing-in as the 47th U.S. president. Speculation over potential U.S. involvement in Bitcoin reserves has further driven discussions about its role in future monetary policies. El Salvador’s latest purchase underscores its confidence in Bitcoin’s long-term potential despite the ongoing turbulence.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
