El Salvador has added 12 Bitcoin to its national reserve, even after agreeing with the International Monetary Fund (IMF) to scale back some of its crypto policies. This purchase brings the country’s total Bitcoin holdings to 6,044 BTC, valued at over $617 million as Bitcoin’s price continues its unprecedented climb.
Recent Purchases
- January 19: The National Bitcoin Office announced the purchase of 11 Bitcoin for $1 million.
- January 20: An additional 1 Bitcoin was purchased for $106,000.
- Current Reserve: 6,044 Bitcoin, valued at approximately $610 million (based on Bitcoin trading at $101,000).
Bitcoin’s Record-High Prices
- On January 20, Bitcoin surged to a new all-time high of $109,000, surpassing its previous record of $108,000 from December 17.
- This price surge coincided with Donald Trump’s inauguration as the 47th U.S. President, highlighting increased global interest in the cryptocurrency.
El Salvador’s Crypto Strategy
El Salvador, under President Nayib Bukele, made history in September 2021 as the first country to adopt Bitcoin as legal tender. Despite agreeing to reduce its Bitcoin activities as part of a $1.4 billion IMF financing deal, the government continues to invest in the cryptocurrency:
- IMF Agreement Changes:
- Private businesses can choose whether to accept Bitcoin.
- Government involvement in the Chivo Wallet was scaled back.
- Commitment to Bitcoin: National Bitcoin Office Director Stacy Herbert reaffirmed that the country’s Bitcoin plans remain unchanged, despite the IMF agreement.
Financial Impact
- Profit: As of January 20, El Salvador’s Bitcoin stockpile has generated a profit of $179 million, thanks to the recent surge in Bitcoin prices.
- Economic Strategy: The government views Bitcoin as a tool to diversify assets, hedge against inflation, and position the country as a leader in the global digital economy.
Public Reception
- A 2024 survey revealed that 92% of Salvadorans still don’t use Bitcoin for transactions, up from 88% in 2023.
- This data highlights a disconnect between government enthusiasm and public adoption.
Global Bitcoin Accumulation
El Salvador isn’t alone in its pursuit of Bitcoin reserves:
- Bhutan: The South Asian country has been quietly mining Bitcoin for years. Blockchain analytics firm Arkham Intelligence reported in September 2024 that Bhutan holds approximately $780 million in digital assets.
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