On Bitcoin Day, El Salvador buys 21 BTC, boosting its reserves to 700M. A huge step in the face of IMF pressure is the bright shine on the adoption of Bitcoin.
The world is now paying attention to El Salvador once again. The statement regarding President Nayib Bukele’s acquisition of 21 Bitcoin (BTC) was made on Bitcoin Day.
The symbolic buy is equivalent to the 21 million total Bitcoin supply. It points to the strong position of El Salvador on Bitcoin, which attracted global attention.
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This acquisition has brought the total country Bitcoin holdings to 6,313.18 BTC and a valuation of approximately 701.7 million.
In honor of the fourth anniversary of the Bitcoin Law, which recognized BTC as legal tender, the 2.3 million purchase celebration is being held.
Bitcoin Day Buy: A Bold Symbolic Gesture
Bukele posted a tweet, saying, Buying 21 bitcoin on Bitcoin Day, and published a picture of the Bitcoin holdings of the country.
This can be seen as a long-term purchase plan to purchase about one Bitcoin a day since March 2024. The steady accretion indicates a high confidence in the future of Bitcoin.
The government is targeting further Bitcoin penetration in the economy. They have initiated Bitcoin training for thousands of government employees and learners.
Nevertheless, the program is not met favorably, and it has internal criticism as well as international criticism.
El Salvador enhanced its security in Bitcoin in the past few weeks. Reserves were moved by the National Bitcoin Office from one wallet into a number of smaller wallets.
Both stock up to 500 Bitcoin as insurance against the eventual quantum threats. This minimizes the exposure to threats in case of wallet hacking.
Navigating Challenges Amid IMF Pressure
El Salvador is not afraid of the IMF loan requirements restricting the purchases of bitcoins. An IMF loan of 1.4 billion dollars meant cessation of Bitcoin purchases by the population and made the Bitcoin laws more lenient. El Salvador, however, is increasing Bitcoin deposits, flouting these requirements.
The government also revised the Bitcoin regulation, where merchants were at liberty to accept BTC. It also reduced funding for the Chivo wallet program.
Nevertheless, the nation is still sticking to the Bitcoin dream, despite the questioning by the IMF.
Bitcoin is trading at around $111,192, which is reflective of how it has performed during volatile times. The continuing Bitcoin purchases in El Salvador continue to have the world watching with some optimism or skepticism.
El Salvador invested in Bitcoin and gold as a diversified portfolio. In an effort to stabilize its gold reserves and reduce its exposure to Bitcoin, the country bought 50 million worth of gold.
