Adds 6 More BTC to Its Holdings
El Salvador’s Bitcoin strategy has taken a notable turn as the nation increased its purchases to 6 BTC on March 10, deviating from its regular acquisition of just 1 BTC per day. This latest acquisition occurs in the face of mounting pressure from the International Monetary Fund (IMF), which has been urging the Salvadoran government to halt its ongoing accumulation of the cryptocurrency.
The milestone purchase was announced by the National Bitcoin Office on March 10 via X, indicating that the government’s total Bitcoin reserves have now reached 6,111.18 BTC, an amount valued at around $493 million at prevailing market prices. This latest acquisition is pivotal as it underscores El Salvador’s commitment to its Bitcoin strategy, even as the price of BTC has been in decline, recently hovering just above the $80,000 mark.
Historically, the Salvadoran government has engaged in similar bulk purchases beyond its regular daily buying schedule, including significant buys of 12 BTC on January 19 and 11 BTC on February 4, followed by a purchase of 5 BTC just one week prior to the latest buy. These actions illustrate a sustained effort to bolster its Bitcoin reserves despite external pressures.
Compounding the situation, in December 2024, El Salvador reached a $1.4 billion financing agreement with the IMF, where the government conceded to revoke Bitcoin’s status as legal tender and to limit its public sector’s engagement with cryptocurrency. The IMF has expressed persistent concerns regarding the risks associated with Bitcoin adoption in the country, warning of potential financial instability.
Despite these stipulations from the IMF, which sought to enforce limits on voluntary Bitcoin accumulation by the public sector, President Nayib Bukele remains resolute in his commitment to the cryptocurrency. In response to international pressures, he characterized the IMF’s demands as “whining” and affirmed that the nation would not cease its Bitcoin purchases, irrespective of external scrutiny. “No, it’s not stopping. If it didn’t stop when the world ostracized us and most ‘Bitcoiners’ abandoned us, it won’t stop now, and it won’t stop in the future,” Bukele stated, reiterating his determination to continue the strategy.
As the tension between El Salvador’s ambitious Bitcoin policy and the IMF’s recommendations intensifies, the global cryptocurrency community watches closely to see how this bold experiment will unfold in the face of financial governance and economic realities.
