El Salvador has recently added 5 more bitcoins to its reserves and has purchased over $5 million worth of Bitcoin in the past month. Consequently, the country’s Bitcoin reserves have reached 6,055 units valued at over $606 million. The Bitcoin buying trend continues with the country adding 50.42 more bitcoins to its reserves in the last month alone. This purchasing policy has been ongoing since 2021 when Bitcoin was accepted as legal tender in the country. Alongside these purchases, El Salvador is revising its Bitcoin policies to align with IMF conditions. In December 2024, the country agreed with the IMF for a $1.4 billion loan. To implement this agreement, the government has altered some of its Bitcoin policies, including making Bitcoin acceptance by businesses optional, eliminating the ability to pay taxes with Bitcoin, and gradually phasing out the Chivo wallet. The IMF has expressed concerns multiple times about Bitcoin adoption in El Salvador, considering it a threat to the country’s financial stability. However, the Salvadoran government remains committed to its Bitcoin strategy. Estis Herbert, the director of the National Bitcoin Office, has announced the government’s intention to increase the speed of Bitcoin purchases and has referred to its plans for public education and training in this field. He also emphasized that El Salvador will continue its strategic Bitcoin purchases for its reserves in early 2025. These supportive policies have attracted digital currency companies to El Salvador. In this regard, Tether, one of the world’s largest stablecoin issuers, has recently relocated its headquarters to this country, justifying this move by citing suitable regulatory conditions under the leadership of Vice President Nayib Bukele.
