El Salvador has achieved a significant milestone, accumulating 6,000 Bitcoins in its reserves over a span of 39 months. This positions the nation as the sixth-largest government holder of Bitcoin globally, with the holdings now valued at approximately $570 million.
The increase in value was bolstered by Bitcoin’s price surge over the past year, rising from $45,000 to over $100,000. President Nayib Bukele highlighted this growth, stating:
Thank goodness, our country’s Bitcoin reserves are now worth 127% more than we paid for them — an increase of more than $344 million.
A Simple, Consistent Strategy
El Salvador’s Bitcoin acquisition strategy relies on a straightforward approach: purchasing one Bitcoin daily. However, the country deviated slightly from this pattern with larger buys, including two separate purchases of 11 Bitcoins on December 20 and 22.
These acquisitions coincided with news that El Salvador had secured a $1.4 billion loan agreement with the International Monetary Fund (IMF).
As part of the IMF deal, El Salvador agreed to make Bitcoin acceptance by businesses voluntary rather than mandatory.
This policy adjustment addressed the IMF’s concerns about potential financial risks associated with the nation’s Bitcoin adoption.
Can El Salvador Become
With other countries reportedly considering similar Bitcoin strategies, El Salvador’s cryptocurrency adoption experiment may influence broader global finance trends. As Bitcoin’s adoption grows, the potential for economic and financial impacts will remain scrutinized.
Talking about Bitcoin strategies, the idea of a U.S. Bitcoin reserve to offset national debt or “strengthen” the dollar is appealing to the crypto community. However, CryptoQuant’s CEO Ki Young Ju argued that the perceived strength of the U.S. dollar and economy could make a national Bitcoin reserve an improbable prospect.
Instead, the Trump administration may focus on reinforcing the dollar’s supremacy, potentially pulling back from pro-crypto stances.
