Following a loan from the International Monetary Fund (IMF), El Salvador once again finds itself in the spotlight, having increased its Bitcoin reserves amid the festive 2024 holiday season.
El Salvador's decision to increase Bitcoin reserves
On December 19, 2024, El Salvador purchased 11 Bitcoins worth over one million dollars. This decision reflects the country's bold BTC strategy despite external criticism, particularly from financial institutions and economists concerned about Bitcoin's volatility and its impact on economic stability.
IMF loan conditions and their impact on cryptocurrency policy
The conditions of the recent IMF loan of $1.4 billion include a ban on cryptocurrency transactions and obligations for taxes to be handled in US dollars. Additionally, the Salvadoran government was instructed to discontinue the use of Chivo, a state-backed cryptocurrency wallet.
El Salvador's Bitcoin strategy
Despite the IMF's restrictions, El Salvador continues to adhere to its BTC strategy, as evidenced by its intention to maintain current Bitcoin reserves. The National Bitcoin Office, established in 2021, confirmed its commitment to this long-term strategy.
Even in the face of international constraints, El Salvador demonstrates a steadfast intent to maintain Bitcoin usage in its economy, highlighted by the symbolic Bitcoin-themed Christmas event.
