El Salvador has ramped up its Bitcoin buying a day after agreeing to an International Monetary Fund deal that required scaling back its government-led crypto activities.
On Dec. 19, the first nation to adopt Bitcoin as a legal tender and host a Bitcoin strategic reserve added 11 BTC worth over $1 million to its holdings. With the recent purchase, the countryโs total holdings now stand at over 5,980 Bitcoin, currently valued at over $577 million according to the National Bitcoin Officeโs tracker.
Up until now, El Salvadorโs Bitcoin accumulation followed the steady pace of its โ1 Bitcoin a dayโ program, launched by President Nayib Bukele after making the cryptocurrency legal tender in 2022.
However, the latest purchase deviated from the strategy and aligns with the National Bitcoin Officeโs plans to continue buying Bitcoin at an โaccelerated pace,โ as confirmed by the Bitcoin officeโs director, Stacy Herbert, on Dec. 19.
This follows the countryโs recent yet-to-be-confirmed $1.4 billion IMF deal, which mandates changes to its Bitcoin policy. The global regulator has repeatedly warned of the economic risks Bitcoin adoption could pose to the nationโs financial stability.
As part of the deal, El Salvador has agreed to remove mandatory requirements for businesses to accept Bitcoin, making it optional, and to restrict tax payments to US dollars. Further, the country will also wind down the Chivo crypto wallet, which was launched in 2021 as the nationโs state-backed platform to facilitate Bitcoin transactions.
Nevertheless, according to Herbert, the country will continue to accept Bitcoin as legal tender and expand its efforts to solidify its position as a Bitcoin-focused economy. This includes advancing Bitcoin capital markets, fostering education programs, and supporting private-sector Bitcoin wallets to serve the growing ecosystem.
Additionally, initiatives like blockchain developer training and financial literacy programs will remain central to El Salvadorโs Bitcoin strategy as governments worldwide grow increasingly curious about Bitcoin, spurred by incoming US President Donald Trumpโs plan to establish a strategic Bitcoin reserve.
Notably, regulators in Brazil have proposed allocating 5% of the nationโs $370 billion treasury to a Bitcoin strategic reserve. Elsewhere, a deputy in the Russian parliament has urged Finance Minister Anton Siluanov to consider a similar approach.
Last month, Polish minister Sลawomir Mentzen also pitched the idea of Poland holding Bitcoin in a bid to make the country more crypto-friendly.
