El Salvador is advancing its Bitcoin strategy by announcing plans to purchase an additional 20,000 BTC for its national treasury.
El Salvador and Its Bitcoin Strategy
El Salvador continually strengthens its ties with Bitcoin. According to a recent tweet by Bitcoin advisor Max Keiser, President Nayib Bukele intends to acquire another 20,000 BTC for the treasury. Since the law was enacted, the country has consistently purchased Bitcoin and now holds over 5,700 BTC, reflecting a substantial investment in cryptocurrency.
Experts' Views on the Country’s Approach
Several experts have expressed their opinions on this move. Crypto investor Tim Draper considers the Bitcoin reserves crucial for El Salvador's financial autonomy. He suggests that if Bitcoin reaches $100,000, the country could use its holdings to pay off its debts to the IMF. Draper also highlighted the potential uses of cryptocurrency reserves.
Criticism and Potential Risks
However, not everyone shares this optimism. Economist Tatiana Marroquín from El Salvador expressed concerns about the plan, noting that Bitcoin spending has not led to widespread adoption, which poses a financial risk. Her primary criticism is the lack of practical Bitcoin use by the general public.
Continuing agreements with countries like Argentina demonstrate El Salvador's efforts to integrate Bitcoin into the global economy, though there are reports the country may reassess its stance amid IMF negotiations.
