El Salvador has recently added 50 BTC to its reserves, continuing its strategy of accumulating Bitcoin. This brings the total to about 6,055 BTC, worth over $606 million. The country is committed to Bitcoin despite making changes to its regulations to meet the International Monetary Fund’s (IMF) requirements for a $1.4 billion loan.
Since making Bitcoin legal tender in 2021, El Salvador has steadily increased its Bitcoin holdings. However, to align with the IMF, the government has made some adjustments. These include making Bitcoin acceptance optional for businesses, eliminating tax payments in Bitcoin, and phasing out the state-supported Chivo wallet.
The IMF has expressed concerns about the risks associated with Bitcoin adoption in El Salvador. Nevertheless, the government remains focused on its Bitcoin strategy. Last December, Stacy Herbert, the director of the National Bitcoin Office, mentioned plans to speed up Bitcoin purchases and enhance Bitcoin education in the public sector.
Earlier this year, Herbert reiterated that El Salvador would keep buying Bitcoin, possibly at a faster pace and at lower prices, for its Strategic Bitcoin Reserve. This commitment has drawn attention from major cryptocurrency companies. For instance, Tether, a stablecoin issuer, recently moved its headquarters to El Salvador, appreciating the country’s crypto-friendly regulations under President Nayib Bukele.
Bukele has also encouraged other companies, like Rumble, to consider relocating to El Salvador. Despite the regulatory changes, Bitcoin adoption remains a crucial part of El Salvador’s economic strategy.
