El Salvador Boosts Bitcoin Holdings After $1.4B IMF Agreement

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.

READ MORE:

JPMorgan Predicts New Era for Crypto Under Trump Administration

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.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.