Bitcoin News Today: Gold Rush 2.0: El Salvador Balances Bitcoin with Bullion

El Salvador has taken a significant step toward stabilizing its international reserves by acquiring nearly $50 million worth of gold, marking its first such purchase since 1990. According to a social media post by the country’s central bank, the acquisition of 13,999 ounces of gold brings its total gold holdings to 58,105 ounces, with an estimated value of $207 million. The move is part of a broader strategy to diversify the nation’s financial assets, particularly in the wake of its controversial adoption of Bitcoin as legal tender in 2021.

The purchase aligns with a global trend of central banks increasing their gold holdings. Over the past three years, institutions around the world have added more than 1,000 tonnes of gold annually, with bullion accounting for nearly 20% of global central bank reserves—second only to dollar-denominated assets. This strategy reflects a desire to hedge against currency volatility, especially in light of Bitcoin’s continued presence in El Salvador’s reserves. As of July 2025, the country’s net international reserves stood at $4.7 billion, with about $700 million in Bitcoin.

The decision to return to gold also coincides with a broader financial recalibration. El Salvador’s central bank emphasized in a statement that the acquisition reflects a "prudent balance" in the composition of international reserves and a commitment to maintaining a "diversified, secure, and long-term" portfolio. This strategy is particularly relevant as global markets anticipate potential U.S. Federal Reserve interest rate cuts, which could affect the value of dollar-denominated assets and further incentivize a shift toward alternative stores of value.

Meanwhile, in Venezuela, another Latin American nation is leveraging stablecoins for economic transactions. Local sources have confirmed that the Venezuelan government is using USDT (Tether) to settle crude oil sales. This approach allows the country to bypass traditional financial blockades and directly inject foreign currency into its economy. The use of USDT is part of a growing trend in which stablecoins are deployed as a tool for maintaining economic activity in nations facing external pressures. The shift highlights the expanding role of digital assets in global trade, particularly in regions with limited access to traditional financial systems.

In parallel, Bolivia has announced the imminent launch of its national central bank digital currency (CBDC), the digital boliviano. The initiative is part of a broader effort to modernize the country’s payment systems and establish a regulated digital alternative to other forms of digital currency. The launch of the CBDC underscores the increasing strategic importance of sovereign digital currencies across Latin America, where nations are exploring ways to maintain economic sovereignty amid shifting global dynamics.

The contrasting approaches—El Salvador’s embrace of gold and Bitcoin, Venezuela’s reliance on stablecoins, and Bolivia’s move toward a CBDC—reflect the diverse strategies being pursued by Latin American countries to navigate economic uncertainties. These developments also illustrate a larger shift in how nations manage their financial systems, with digital assets and traditional commodities playing complementary roles in securing economic stability.

Source: [1] El Salvador buys $50M in gold for reserve diversification (https://www.mining.com/el-salvador-buys-50m-of-gold-for-reserve-diversification/) [2] Economist: USDT Leveraged to Settle Crude Oil Sales in Venezuela (https://www.mexc.com/en-GB/news/economist-usdt-leveraged-to-settle-crude-oil-sales-in-venezuela/84642) [3] August in Digital Assets Policy: Little Left to Summer Slumber (https://www.fireblocks.com/blog/august-in-digital-assets-policy-little-left-to-summer-slumber/) [4] El Salvador increases gold reserves by 32% after Bitcoin windfall (https://www.kitco.com/news/article/2025-09-05/el-salvador-increases-gold-reserves-32-after-bitcoin-windfall) [5] El Salvador acquires $50M in gold for the first time since ... (https://cryptobriefing.com/el-salvador-gold-bitcoin-bet/)