El Salvador Doubles Down on Bitcoin: Strengthening Reserves Amid IMF Pressure

On January 20, 2025, El Salvador’s National Bitcoin Office announced it had added 12 more bitcoins to its strategic reserves, bringing the total to 6,044 BTC, which is now worth over $617 million. This move comes despite a recent agreement with the International Monetary Fund (IMF), which urged El Salvador to scale back some of its crypto policies in exchange for a $1.4 billion loan.

El Salvador Doubles Down on Bitcoin, Ignoring IMF Demands! 🏝️💥

President Nayib Bukele, a passionate supporter of bitcoin, has continued to stand firm in his pro-crypto stance, even as international criticism and pressure mount. Back in September 2021, El Salvador became the first country to officially adopt BTC as legal tender—a move that sparked heated debates both locally and globally.

As part of the agreement with the IMF, El Salvador has agreed to reduce its government’s involvement in the Chivo crypto wallet and ease the requirement for businesses to accept bitcoin. However, the recent purchase of 12 more BTC shows that the Salvadoran government remains committed to its crypto diversification strategy.

Strengthening National Reserves with Bitcoin 🔥📈

Stacy Herbert, the director of the National Bitcoin Office, reassured the public that the country's plans regarding bitcoin are unchanged. She emphasized that the primary goal is to strengthen national reserves and capitalize on the rise in BTC values, which recently hit a historic high of $109,000 per coin.

Do Salvadorans Actually Use Bitcoin? 🤔💸

Despite the government’s enthusiasm for bitcoin, the broader population’s adoption remains controversial. A survey conducted in October 2024 revealed that 92% of Salvadorans don’t use BTC for daily transactions, a slight increase from the 88% who didn’t use cryptocurrencies in a 2023 survey.

The purchase of 12 additional BTC illustrates the government's determination to stick to its pro-bitcoin policies, even as it faces both local skepticism and international pressure. This strategy could have lasting effects not only on El Salvador’s economy but also on the global adoption of cryptocurrencies.

Frequently Asked Questions 🤔

1. Why did El Salvador add 12 more bitcoins to its reserves?
El Salvador is building its bitcoin reserves to strengthen its financial position and take advantage of the recent surge in BTC prices.

2. How does the agreement with the IMF affect El Salvador's crypto policies?
The agreement pressures El Salvador to reduce its involvement in crypto policies, including limiting government control over the Chivo wallet and easing requirements for businesses to accept bitcoin.

3. Are Salvadorans fully on board with using bitcoin?
No, surveys show that a large percentage (92%) of Salvadorans do not use bitcoin in their daily transactions, despite the government's support for it.

4. What is the value of El Salvador's bitcoin reserves?
As of January 2025, El Salvador’s bitcoin reserves are valued at over $617 million.

5. How could El Salvador’s continued investment in bitcoin impact the country?
El Salvador’s ongoing investment in bitcoin could have significant effects on both its economy and the global adoption of cryptocurrencies, even though public acceptance remains a challenge.