El Salvador is doubling down on its Bitcoin strategy, adding more BTC to its national reserves despite global market fluctuations and IMF conditions. The country’s latest accumulation reinforces its long-term commitment to Bitcoin as a sovereign asset, fueling debates over its economic strategy.
El Salvador’s National Bitcoin Office (ONBTC) confirmed that the country bought another Bitcoin on March 1, bringing its total holdings to 6,093.18 BTC, currently valued at over $523 million.
The latest purchase extends the country’s ongoing “buy the dip” strategy, which includes:
- 12 BTC ($1M) added in the past 7 days.
- 44 BTC ($3.75M) acquired over the past 30 days.
- A consistent dollar-cost averaging (DCA) approach since late 2022.
“The first Strategic Bitcoin Reserve in the world keeps growing, and so El Salvador keeps winning,” ONBTC declared.
Legal Tender but No Tax Payments in BTC
El Salvador’s Bitcoin law recently underwent changes, allowing more flexibility for businesses. The Legislative Assembly voted 55-2 in January to modify the law, notably:
- Removing the word “currency” while maintaining Bitcoin’s legal tender status.
- Allowing businesses to opt out of accepting BTC as payment.
- Banning BTC for tax and state bill payments.
- Ensuring students learn Bitcoin fundamentals, including private key security and cold storage usage.
These amendments, set to take effect on May 1, are seen as an effort to balance Bitcoin adoption with regulatory compliance, particularly in light of the country’s agreement with the International Monetary Fund (IMF).
IMF Pressure vs. El Salvador’s Bitcoin Commitment
El Salvador’s continued Bitcoin accumulation comes despite a $1.4 billion IMF loan agreement signed in December 2024. The IMF required the country to:
- Make Bitcoin acceptance voluntary for businesses.
- Limit public sector involvement in crypto-related activities.
- Ensure all taxes are paid exclusively in U.S. dollars.
- Gradually reduce reliance on the state-backed Chivo Wallet.
While these policy adjustments align with IMF conditions, President Nayib Bukele has not backed down on Bitcoin acquisitions. The government continues to buy at least one Bitcoin per day, signaling long-term confidence in BTC as a reserve asset.
Is Bitcoin Adoption in El Salvador Succeeding?
Despite the government’s Bitcoin push, public adoption remains low. A survey by the Jesuit Central American University in January 2024 found that 92% of Salvadorans had not used Bitcoin in the past year.
However, El Salvador’s ambassador to the U.S., Milena Mayorga, dismissed concerns, stating:
“We have a Bitcoin Office, we have the Bitcoin Law, and Bitcoin can be used in El Salvador.”
With Bitcoin’s price volatility and global regulatory uncertainty, El Salvador’s continued accumulation strategy raises critical questions:
- Will the BTC holdings boost the country’s economy in the long run?
- Can Bitcoin reserves act as a hedge against global inflation?
- How will the IMF and global financial institutions react to El Salvador’s ongoing Bitcoin purchases?
Final Takeaway
El Salvador remains the world’s most committed Bitcoin nation, increasing its BTC reserves despite market swings and international scrutiny.
While institutional pressures from the IMF loom, Bukele’s government continues to bet big on Bitcoin’s long-term value.
The question now is: Will El Salvador’s Bitcoin strategy pay off, or will external financial pressures force a policy shift?
