Defying an IMF agreement, which states that El Salvador must reduce its economy’s exposure to the Bitcoin market, the Central American country recently purchased at least eleven BTC for almost a million dollars. What is the message this BTC-friendly is trying to convey to the crypto community?
The latest purchase of Bitcoin in El Salvador
Reports indicate that at least eleven Bitcoin tokens were recently purchased by the Central American country of El Salvador. The purchase may have cost at least $1 million, as the BTC price currently remains around $93,347.36.
Before the purchase, the country held at least 6,011 BTC tokens. The latest purchase brought the country’s BTC reserve to nearly 6,022 Bitcoin tokens, worth around $572 million.
Experts believe the latest purchase reflects the pro-crypto country’s continued commitment to the BTC market.
A Consistent Bitcoin Buying Strategy by El Salvador
El Salvador has been steadily increasing its BTC reserve since February 2024. On February 29, 2024, the country’s Bitcoin reserve stood at 2,381 BTC. On March 15, it rose sharply to 5,689.7 BTC. By the end of 2022, the country had at least 6,002 BTC tokens in its reserve. Currently, he holds around 6,022 BTC.
Agreement between El Salvador and the IMF: the role of Bitcoin
El Salvador is in a difficult economic situation. The country’s efforts to secure a $1.4 billion IMF loan were aimed at stabilizing its ailing economy. Reports indicate that the country is considering approaching the World Bank, the Inter-American Development Bank and several regional development banks for financial assistance. Reports add that El Salvador aims to provide at least $3.5 billion in aid to boost its economy.
Four key IMF conditions
The IMF recently accepted El Salvador’s loan request, but set at least four conditions, likely to destabilize the country’s extraordinary crypto ambitions.
- First, the organization wants the country to make Bitcoin acceptance voluntary for the private sector.
- Second, it demands the closure of the Chivo wallet – the official Bitcoin and Dollar wallet of the government of El Salvador that allows users to make and reserve BTC transitions for free.
- Third, it provides for the removal of the provision allowing people to pay taxes in Bitcoin.
- Finally, it calls for reducing the country’s public sector engagement in BTC-related activities.
In conclusion, El Salvador’s continued purchases of Bitcoin highlight its commitment to the cryptocurrency despite external pressures. With growing strategic reserves, the country’s economic approach remains a bold experiment on the world stage.
