Connect with us
Active Currencies 17753
Market Cap $4,008,233,830,279.10
Bitcoin Share 58.97%
24h Market Cap Change $-4.75

Bitcoin purchases to continue in El Salvador despite IMF warning

2min Read

How far will El Salvador go with its Bitcoin strategy, despite IMF objections?

El Salvador and Bitcoin
Share this article

  • After the latest purchase, El Salvador’s total holdings amount to $632 million.
  • Countries like Russia and China are exploring national Bitcoin Reserves despite regulatory challenges.

El Salvador, the first nation that embrace cryptocurrency as legal tender alongside the U.S. dollar, continues to navigate tensions with the International Monetary Fund (IMF).

Just days after securing a financing agreement, the government reaffirmed its commitment to buying Bitcoin [BTC]. This move accelerated its accumulation, despite IMF recommendations to limit exposure to the cryptocurrency.

This isn’t the first instance of friction. The IMF raised concerns back in September 2021, warning of financial and legal risks that have yet to materialize.

El Salvador’s Bitcoin strategy

The country’s Bitcoin Office recently added $1 million to its Strategic Bitcoin Reserve. Thus, showcasing the government’s continued commitment to the king coin.

Notably, this move has proved successful. The nation’s Bitcoin portfolio has surged by 133%, reaching a total valuation of $632 million.

Remarking on the same, Stacy Herbert, El Salvador’s national Bitcoin office director, took to X (formerly Twitter) and noted

“El Salvador will continue buying bitcoin (at possibly an accelerated pace) for its Strategic Bitcoin Reserve.” 

In a separate tweet, Herbert further added, 

Stacy Herbert

Source: Stacy Herbert/X

It’s impact on other nations

This acquisition aligns with President Nayib Bukele’s strategy to purchase one Bitcoin daily. This demonstrates the nation’s unwavering commitment to incorporating Bitcoin into its financial framework.

That being said, El Salvador’s continued commitment to its Bitcoin strategy reflects a broader trend. Countries once opposed to cryptocurrency, like China and Russia, are now exploring ways to integrate digital assets into their financial systems.

Additionally, regulators from El Salvador and Argentina have already entered into a partnership to foster the growth and advancement of the cryptocurrency sector in their countries.

Share
Ishika Kumari is a Crypto Analyst and Content Strategist at AMBCrypto, specializing in the analysis of cryptocurrency regulations, market trends, and the socio-political impact of blockchain technology. Her expertise is grounded in her academic background as a graduate of Political Science from the renowned University of Delhi. This discipline has equipped her with a sophisticated framework for analyzing complex governance models, international regulatory landscapes, and the economic principles that underpin decentralized systems. At AMBCrypto, Ishika applies this unique analytical lens to her work. She excels at breaking down intricate subjects—from the technicalities of new protocols to the nuances of global crypto legislation—into clear, accessible, and insightful content. Her primary mission is to bridge the gap between the complexity of the digital asset industry and the everyday reader, ensuring that AMBCrypto's audience is not just informed, but truly understands the forces shaping the future of finance.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.
Thank you for subscribing to Unhashed.