El Salvador, recognized as one of the most pro-crypto nations globally, acquired 5 BTC for its Bitcoin Reserve on Saturday. The nation invested over $5 million in BTC throughout the previous month.
This action coincides with El Salvador’s revisions to its Bitcoin regulations to comply with the stipulations outlined by the International Monetary Fund (IMF).
El Salvador’s Bitcoin Accumulation Persists Amidst IMF-Driven Policy Modifications
On February 1, the Bitcoin Office of El Salvador confirmed the acquisition, raising the nation’s total reserves to roughly 6,055 BTC, equivalent to more than $606 million.
In just the past month, the administration has secured approximately 50.42 BTC, continuing its consistent accumulation since adopting Bitcoin as legal tender in 2021.
Nevertheless, the nation has also recently made modifications to its Bitcoin regulatory structure. In December 2024, the government reached an arrangement with the IMF for a $1.4 billion loan through the Extended Fund Facility (EFF).
To fulfill the requirements of this arrangement, the administration has altered significant Bitcoin policies. These modifications involve making Bitcoin acceptance voluntary for businesses, abolishing tax obligations in BTC, and gradually discontinuing the government-supported Chivo wallet.
This decision was not unexpected, given that the IMF has regularly expressed apprehensions regarding El Salvador’s Bitcoin adoption, indicating potential risks to financial stability. Although these regulatory amendments imply certain concessions, the government’s overarching Bitcoin strategy remains unchanged.
Last December, Stacy Herbert, the director of the National Bitcoin Office, suggested an expedited Bitcoin accumulation strategy. She also emphasized initiatives to improve Bitcoin education and training in the public sector.
The governmental representative reinforced her position earlier this year, stating:
“El Salvador will keep purchasing bitcoin (possibly at an accelerated rate AND at a reduced price) for its Strategic Bitcoin Reserve.”
It is not surprising that El Salvador’s pro-Bitcoin position has drawn significant crypto enterprises to its borders. Recently, stablecoin issuer Tether shifted its headquarters to the nation, citing its favorable regulatory atmosphere under President Nayib Bukele.
Shortly thereafter, Bukele encouraged Rumble CEO Chris Pavlovski to contemplate relocating his company to El Salvador as well.
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