El Salvador adds $1M in Bitcoin despite IMF limits
Although the IMF deal imposes restrictions on government-led Bitcoin activities, the country remains committed to its cryptocurrency strategy.
El Salvador has added $1 million worth of Bitcoin to its strategic reserve, purchasing 11 BTC shortly after securing a $1.4 billion financing deal with the International Monetary Fund (IMF). This latest acquisition brings the nation’s holdings to nearly 5,981 BTC, valued at around $580 million. The move diverges from its previous ‘one Bitcoin a day’ policy announced by President Nayib Bukele last year.
The IMF agreement, however, comes with stipulations that aim to limit the government’s involvement in cryptocurrency activities. El Salvador agreed to confine its Bitcoin transactions, make private sector acceptance voluntary, and ensure taxes can only be paid in US dollars. Additionally, the government plans to sell or phase out the Chivo crypto wallet, with private wallets expected to take over its role in the market.
Despite these restrictions, the National Bitcoin Office reaffirmed its commitment to Bitcoin as a core part of the country’s strategy, hinting at potential accelerated purchases in the future. Director Stacy Herbert assured citizens that Bitcoin would remain legal tender, even as the IMF deal awaits final approval. This marks the culmination of years of negotiations, underscoring the challenges posed by Bukele’s ambitious Bitcoin policies.
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