El Salvador is the first nation to have adopted Bitcoin as a legal tender. It has purchased more than 100 million dollars in BTC, despite having pledged to the International Monetary Fund that it would limit the public’s exposure to this asset under a loan contract.
According El Salvador’s Bitcoin Office reported that the government had acquired 1,090 Bitcoins (BTCThe purchase was made after the sale of a property in New York City for more than 100 million dollars on Tuesday. This purchase follows the IMF said in a July report The Central American country has not purchased any Bitcoins since the approval of the organization. $1.4 billion loan program At the end of 2020.
According to El Salvador’s Bitcoin reserve data, the country’s Bitcoin holdings went from 5,968 BTC on Dec. 18, 2024 — when the government inked a deal with the IMF — to over 7,474 BTC following its latest purchase announcement.
El Salvador’s reserves are valued at approximately $683million at the moment of writing. Bitcoin is losing its ground, having fallen 28% since an all-time low of $126,000 was reached in early October.
The move follows comments in July from Quentin Ehrenmann, general manager at My First Bitcoin — a non-governmental organization focused on Bitcoin adoption — who said that El Salvador’s Bitcoin reserve had a limited impact on the broader population. He said that “since the government entered into this contract with the IMF, Bitcoin is no longer legal tender, and we haven’t seen any other effort to educate people.”
“The government, apparently, continues to accumulate Bitcoin, which is beneficial for the government — it’s not directly good for the people.”
Cointelegraph has not received a response from either the IMF or the Salvadoran government to its requests for comment.
Related: Pro-Bitcoin restaurant Steak ‘n Shake announces El Salvador expansion
Is El Salvador buying Bitcoin or not?
El Salvador’s Bitcoin Office has released data that shows the government continues to collect BTC after signing the IMF deal. IMF requested the country to also comply with their request. restrict Bitcoin purchases in early MarchAccording to the terms and conditions of your previous loan contract.
Still, a letter of intent signed by El Salvador’s central bank president and Minister of Finance — quoted in the aforementioned July IMF report — claims that the Central American country bought no Bitcoin since the 2024 loan.
Chivo “does not adjust its Bitcoin reserves to reflect changes in clients’ Bitcoin deposits,” What led to “minor” Disparities that led to the impression that El Salvador’s government was collecting BTC.
Related: My First Bitcoin ends El Salvador program, pivots to global BTC education
This letter was signed by Salvadoran government officials and stated, in part, that “in line with commitments under the program, the stock of Bitcoins held by the public sector remains unchanged.” Also, it promised to take steps to lower exposure.
“We are taking steps to mitigate fiscal risks by reducing the public sector’s role in the Chivo wallet and reframing the Bitcoin project.”
Those assurances came before the latest — and unusually large — Bitcoin purchase. The government continued to say it had been steadily buying BTC prior to this week’s purchase, but it raised new questions about how it adheres to the IMF agreement and reports its Bitcoin reserve.
Magazine: What Bitcoin adoption is ACTUALLY like in El Salvador
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Source: cointelegraph.com
