Key Takeaways
- El Salvador purchases 11 BTC for $1 million, a day after proposing a $1.4 billion IMF deal that could limit public sector Bitcoin activities.
- Despite the IMF agreement scaling back government Bitcoin engagement, El Salvador plans to continue and possibly accelerate its Bitcoin purchases.
- The deal with the IMF includes making Bitcoin acceptance voluntary for businesses and phasing out the government's Chivo wallet while keeping Bitcoin as legal tender.
El Salvador's Bitcoin Purchase Post-IMF Deal
El Salvador bought 11 BTC worth $1 million just one day after proposing a $1.4B loan deal with the IMF.
The purchase was announced by the National Bitcoin Office on Dec. 19 via an X post, adding the Bitcoin to its Strategic Bitcoin Reserve.
Strategic Shift in Bitcoin Policy
The IMF deal includes conditions to limit government involvement in Bitcoin activities, contrary to El Salvador's previous policies.
Despite these restrictions being imposed when the deal comes into effect, El Salvador plans to continue and possibly accelerate its Bitcoin acquisitions, according to a Bitcoin Office spokesperson.
The country's Bitcoin holdings now stand at 5,980.77 BTC, valued at approximately $580M.
Future of Bitcoin in El Salvador
Stacy Herbert, the National Bitcoin Office Director, confirmed that Bitcoin will remain legal tender in El Salvador.
The government intends to phase out its Chivo wallet while expecting private sector wallets to continue operating.
The IMF deal still requires approval from the IMF Executive Board, marking the end of prolonged negotiations over El Salvador's Bitcoin policies.
