El Salvador Increases Bitcoin Reserves Despite IMF Demands
Date: 2025-02-03 Author: Henry Casey Categories: IN WORLD
El Salvador continues to invest in Bitcoin, increasing its reserves. On February 1, the country purchased another 5 BTC, bringing the total to 6,055 BTC, equivalent to more than $606 million.
Over the past month, the government has invested over $5 million in cryptocurrency, purchasing about 50 BTC. This strategy is in line with the course taken in 2021, when Bitcoin became legal tender in the country.
In December 2024, El Salvador entered into an agreement with the IMF for a $1.4 billion loan under the Extended Fund Facility (EFF) program. As part of the deal, the country made changes to the regulation of the cryptocurrency sector:
1 Mandatory acceptance of bitcoin by businesses was lifted
2 BTC stopped being used for tax payments
3 The process of winding down the state Chivo wallet has begun
These measures were a response to repeated comments from the IMF, which expressed concerns about the impact of bitcoin on the country's financial stability. However, the government is not abandoning its long-term strategy to accumulate BTC.
Director of the National Bitcoin Office Stacy Herbert announced plans in December to accelerate the increase of reserves and develop educational programs related to cryptocurrency.
"El Salvador will continue to acquire bitcoin, probably more actively and at a reduced price, forming its Strategic Reserve," she confirmed in early 2025.
President Nayib Bukele's policies continue to create favorable conditions for cryptocurrency companies. Tether recently moved its headquarters to El Salvador, and the management of the media platform Rumble received an offer to follow suit.
