El Salvador recently bought 12 more Bitcoin, bringing the total amount of Bitcoin the country has on hand to over 6,000 BTC, which is worth about $617 million. New purchases include 11 Bitcoin bought on January 19 for more than $1 million and another Bitcoin bought on January 20 for $106,000. Despite agreeing with the International Monetary Fund (IMF) to reduce its cryptocurrency activities, the country proceeded with the purchase.
El Salvador agreed to borrow $1.4 billion from the IMF in December 2024. The deal limited the country’s use of Bitcoin. Businesses would have to choose to use Bitcoin, and the government would have less control over the Chivo crypto wallet. Despite these promises, El Salvador demonstrated its unwavering commitment to its larger crypto plans by purchasing $1 million worth of Bitcoin the following day.
El Salvador made history in 2021 when it became the first country to accept Bitcoin as money along with the U.S. dollar. Since then, the government has gotten both praise and criticism, mostly from the IMF. Despite acknowledging the unrealized risks associated with Bitcoin use, the IMF recommended that El Salvador restrict its use of cryptocurrency, particularly in the public sector.
As of January 2024, the country’s Bitcoin reserve shows a gain of about $179 million. However, the public still does not widely use Bitcoin. For example, a study showed that most Salvadorans do not use Bitcoin for transactions. This shows how challenging it will be for the country to fully incorporate cryptocurrency into its economy.
The fact that El Salvador keeps buying Bitcoin shows that the government is still committed to its crypto goals, even though there are pressures from outside sources. Along with El Salvador, countries like Bhutan have been buying Bitcoin, which shows that people around the world are becoming more interested in digital assets.
