Despite reaching a loan agreement with the International Monetary Fund (IMF), El Salvador has disregarded certain restrictive policies and purchased a total of 12 Bitcoins (BTC) on January 19 and 20, continuing to expand its Bitcoin reserves.
Ignoring the Agreement, Bitcoin Purchases Reach a Total of 6,044
According to the official Twitter account of El Salvador’s National Bitcoin Office, 11 Bitcoins (BTC) were purchased on January 19, followed by the acquisition of one more Bitcoin the next day, totaling over 1 million USD spent. El Salvador currently holds approximately 6,044 Bitcoins (BTC), valued at around 610 million USD.
IMF Agreement Adjusts Bitcoin Purchasing Policy
In December last year, El Salvador reached a loan agreement of 1.4 billion USD with the IMF, one condition of which was to reduce certain Bitcoin (BTC) purchasing policies. Despite having reached an agreement with the IMF, El Salvador purchased nearly 1 million USD worth of Bitcoin (BTC) the day after signing the agreement, and the Director of the National Bitcoin Office, Stacy Herbert, stated that El Salvador’s Bitcoin purchasing plan remains unaffected.
Director of the National Bitcoin Office Stacy Herbert stated on Twitter that the Bitcoin purchasing plan is not affected.
Effectiveness of Bitcoin as the Country’s Reserve Asset
El Salvador became the first country in the world to adopt Bitcoin as legal tender in September 2021. Data shows that as of January 20, El Salvador’s Bitcoin reserves have realized nearly 180 million USD in profits.
El Salvador relies on Bitcoin to earn 180 million USD in profits.
However, according to a survey conducted in October 2024, 92% of Salvadorans have not used Bitcoin for transactions, an increase compared to 88% in 2023.
The usage rate of Bitcoin among Salvadorans remains low.
(Just after reaching an agreement with the IMF, El Salvador turns around and increases its Bitcoin purchases.)
Risk Warning
Investing in cryptocurrencies carries a high level of risk, and prices can be highly volatile, potentially resulting in the loss of your entire principal. Please carefully assess the risks.