El Salvador has expanded its Bitcoin holdings by purchasing 11 BTC worth approximately $1 million, demonstrating its ongoing commitment to cryptocurrency adoption despite recent agreements with the International Monetary Fund (IMF).
The National Bitcoin Office announced the acquisition on December 19th, bringing the country's total Bitcoin reserves to 5,980.77 BTC, currently valued around $580 million with Bitcoin trading near $97,000.
This purchase represents a shift from El Salvador's previous strategy of buying one Bitcoin per day, which was implemented by President Nayib Bukele in November 2022. The move comes just after securing a $1.4 billion financing agreement with the IMF.
The IMF deal includes conditions requiring El Salvador to limit government involvement in Bitcoin activities, such as making private sector Bitcoin use voluntary and ensuring taxes remain payable in U.S. dollars. The agreement also calls for winding down government involvement in the Chivo digital wallet.
However, Stacy Herbert, director of the National Bitcoin Office, indicated that the country plans to accelerate its Bitcoin purchases moving forward. A spokesperson confirmed that El Salvador has no plans to sell its current holdings and will continue acquiring more Bitcoin.
El Salvador made history in September 2021 by becoming the first nation to adopt Bitcoin as legal tender. While the Chivo wallet may be sold or discontinued as per IMF requirements, Bitcoin's status as legal tender remains unchanged, with private sector wallets expected to serve users' needs.
The IMF Executive Board has yet to give final approval to the financing agreement, which comes after extended negotiations influenced by concerns over El Salvador's Bitcoin policies.