El Salvador has adjusted its Bitcoin strategy, focusing on government reserves amid new IMF limitations.
Change of El Salvador's Strategy
El Salvador has shifted its focus to government Bitcoin holdings, with President Nayib Bukele continuing to advocate for this approach, emphasizing national treasury accumulation.
Impact of IMF Agreements
The agreements with the IMF impose restrictions on state-driven initiatives regarding Bitcoin, which leads to decreased public adoption. Currently, the government is concentrating on accumulating Bitcoin, which reportedly reached 6,246 coins by mid-2025.
Future of Bitcoin Reserves
The future strategy focuses on supporting government reserves, which may reduce fiscal risk and reliance on government-facilitated Bitcoin usage. This approach also aims to maintain Bitcoin as legal tender through voluntary private sector engagement.
El Salvador's shift in Bitcoin strategy reflects cautious fiscal policies and a desire to maintain economic resilience in light of international requirements.
