El Salvador Boosts Bitcoin Holdings to 6,100 BTC Despite IMF Cautions
1min read El Salvador, the first country to adopt Bitcoin as legal tender, has continued its strategy of purchasing the cryptocurrency daily. On Monday night ET, the Central American nation acquired 5 Bitcoin, worth approximately $415,000 at the time of purchase. This transaction was confirmed through data from Arkham Intelligence.
With this latest purchase, el Salvador's total Bitcoin holdings have increased to 6,100 BTC, currently valued at around $510 million. The country has been consistently buying one Bitcoin per day since November 2022, demonstrating its commitment to the cryptocurrency.
El Salvador's Bitcoin strategy has not gone unnoticed by international financial institutions. The International Monetary Fund (IMF) recently approved a $1.4 billion loan to the country, but with specific conditions regarding its cryptocurrency activities. The IMF's requirements include reduced state involvement in crypto activities, such as limitations on government Bitcoin purchases and transactions.
In response to the IMF's conditions, El Salvador has taken steps to scale back some of its Bitcoin-related programs and made Bitcoin acceptance voluntary. The IMF's arrangement with El Salvador aims to improve public finances and governance while addressing risks linked to the country's Bitcoin program.
Bitcoin's price has shown volatility during this period. At the time of El Salvador's latest purchase, the cryptocurrency was trading at around $83,000, representing an 8% decrease over 24 hours, according to CoinGecko.
President Nayib Bukele has been exploring opportunities beyond cryptocurrency investments. He recently held meetings with Ben Horowitz and Marc Andreessen, co-founders of a16z, to discuss technology and AI investment opportunities. The discussions focused on establishing El Salvador as a regional tech hub, with the country offering attractive incentives such as a 0% tax rate for tech industries.
El Salvador is also creating a supportive regulatory framework for AI development as part of its broader technology strategy. The government sees technology as a key growth driver and is working to attract both crypto and traditional tech investments.
Despite market fluctuations, El Salvador continues its Bitcoin purchases, demonstrating a long-term commitment to digital assets. The country's latest transaction adds to its position as a major government holder of Bitcoin, representing a substantial investment in cryptocurrency.
