Key Takeaways
- The country acquired 11 Bitcoin on January 19, followed by one more on January 20
- El Salvador now holds 6,044 Bitcoin, valued at approximately $610 million
El Salvador has once again increased its Bitcoin reserves, purchasing 12 Bitcoin in two transactions over two days.
According to the National Bitcoin Office (ONBTC), the country acquired 11 Bitcoin on January 19, followed by one more on January 20, adding over $1 million to its Strategic Bitcoin Reserve. With these additions, El Salvador now holds 6,044 Bitcoin, valued at approximately $610 million, based on recent market prices.
This latest purchase follows a recent $1.4 billion financing agreement with the International Monetary Fund (IMF), in which El Salvador agreed to scale back certain aspects of its Bitcoin-related initiatives.
The deal included commitments to reduce government involvement in Bitcoin-related activities, such as the Chivo wallet, and make Bitcoin acceptance voluntary for businesses. Despite these agreements, the ONBTC reaffirmed the government’s dedication to its Bitcoin strategy. Stacy Herbert, director of the ONBTC, stated that the country’s broader goals for Bitcoin remain unchanged, emphasizing the focus on reserve building and capitalizing on Bitcoin’s market performance.
In September 2021, El Salvador became the first country to adopt Bitcoin as legal tender alongside the U.S. dollar. President Nayib Bukele has always been a vocal advocate of Bitcoin, dubbing it as a tool for economic diversification and financial inclusion. However, public reception has been mixed. A 2024 survey indicated that 92% of Salvadorans do not use Bitcoin for daily transactions, up from 88% in a similar survey the previous year.
The IMF has expressed concerns about the potential risks of Bitcoin adoption, including financial stability and transparency challenges. While it acknowledged in 2024 that many of these risks had not yet materialized, the organization continues to recommend caution and additional safeguards. In recent years, it has urged El Salvador to limit government involvement in Bitcoin initiatives and reduce potential exposure to market volatility.
El Salvador’s commitment to Bitcoin extends beyond acquisitions. The government has invested in Bitcoin mining, leveraging the country’s abundant geothermal energy from volcanoes to mine over 474 Bitcoin since 2021. This renewable energy strategy has been highlighted as an innovative approach to reducing the environmental impact of cryptocurrency mining.
The timing of El Salvador’s latest purchase coincided with Bitcoin hitting a new all-time high of $109,000 on January 20
