El Salvador Boosts Bitcoin Holdings After $1.4B IMF Agreement
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El Salvador recently added $1 million in Bitcoin to its Strategic Bitcoin Reserve, just a day after finalizing a $1.4 billion financing agreement with the International Monetary Fund (IMF).
This marks a departure from the government’s prior strategy of purchasing “one Bitcoin per day,” a practice announced by President Nayib Bukele in late 2022. With this latest acquisition of 11 Bitcoin, El Salvador’s total holdings now stand at approximately 5,980 BTC, valued at around $580 million.
Stacy Herbert, Director of the National Bitcoin Office, hinted at potentially ramping up Bitcoin purchases. However, the IMF deal imposes limitations on government-led Bitcoin activities.
To secure the funding, El Salvador agreed to confine its Bitcoin transactions, ensure private sector participation remains optional, limit tax payments to U.S. dollars, and reduce the state’s involvement in its Chivo wallet operations.
This agreement, pending final IMF Executive Board approval, ends prolonged negotiations strained by the country’s pro-Bitcoin policies, which the IMF previously flagged as a financial risk.
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