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New El Salvador Bitcoin Purchase Boosted With 11 BTC

Key Points:

El Salvador continues to accumulate Bitcoin, with 6,203 Bitcoins currently valued at $554 million.
Despite growing El Salvador Bitcoin investments, a recent survey shows that 92% of Salvadorans do not use Bitcoin for daily transactions.

El Salvador Bitcoin accumulation continues, even after an agreement of a $1.4 billion loan with the International Monetary Fund that also included certain changes in its Bitcoin policy.

Accumulation of El Salvador Bitcoins Moves Ahead Full Throttle

Under these terms, El Salvador will allow merchants to accept Bitcoin voluntarily rather than mandating its use, and it will reduce government involvement in Bitcoin-related initiatives. This agreement, however, still requires approval from the IMF’s executive board.

The government of El Salvador just bought 11 Bitcoins, worth over $1 million, to add to its Strategic Bitcoin Reserve. It has now amassed a total of 6,203 Bitcoins since 2021, with an approximate market value of $554 million. It is on record through the National Bitcoin Office that the government will purchase at least one Bitcoin per day, reiterating its commitment not to sell its Bitcoin or any other asset.

Along with this investment, the government would phase out its direct management involvement in the Chivo e-wallet, a state-backed Bitcoin wallet. But the country has, meantime, made it clear that taxes will still be paid in U.S. dollars, the country’s official currency.

Survey Suggests Salvadorans Remain Skeptical About Bitcoin

Despite the government’s continued investment, El Salvador Bitcoin adoption remains a contentious issue. Max Keiser, Bitcoin advisor to President Nayib Bukele, dismissed the IMF‘s concerns by suggesting that Bitcoin use in the country has always been voluntary and is growing in popularity.

However, a recent survey showed that 92% of Salvadorans still don’t use Bitcoin for everyday transactions, though this figure represents a slight improvement from 88% in the previous year.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.