Key Points
- El Salvador has increased its Bitcoin reserves to 6,101.18 BTC, valued at around $527 million.
- The country continues to strengthen its Bitcoin strategy despite recent changes to align with a $1.4 billion IMF loan agreement.
El Salvador has boosted its Bitcoin holdings by acquiring an additional 1 BTC. This brings the nation’s total Bitcoin reserves to 6,101.18 BTC, which is roughly valued at $527 million.
The recent acquisition underlines President Nayib Bukele’s commitment to enhancing the nation’s Bitcoin strategy. El Salvador’s National Bitcoin Office confirmed the purchase on March 4.
El Salvador’s Bitcoin Accumulation Strategy
This action is in line with El Salvador’s “1 BTC a day” accumulation plan. The strategy is designed for economic diversification and as a safeguard against traditional financial systems. The purchase also indicates the government’s continued trust in Bitcoin (BTC), despite recent market fluctuations.
President Bukele stated “It’s not stopping,” following the acquisition.
Bitcoin Strategy Amid IMF Deal
The recent Bitcoin purchase comes as El Salvador adjusts its Bitcoin policies to conform with a $1.4 billion loan agreement with the International Monetary Fund. The country recently amended its Bitcoin law, making the use of the cryptocurrency voluntary rather than obligatory. This change was made in an effort to secure IMF support and maintain fiscal stability in the eyes of international lenders.
Despite these policy changes, El Salvador continues to augment its Bitcoin reserves as a crucial part of its long-term economic plan. As of March 4, the country has added 46 BTC in the past 30 days, worth approximately $3.97 million. This highlights El Salvador’s belief in Bitcoin’s potential as a store of value and a catalyst for economic growth.
El Salvador’s Bitcoin City project, which gained worldwide recognition in 2023, aims to establish a center for cryptocurrency innovation. The country continues to implement measures to make itself more Bitcoin-friendly.