El Salvador Doubles Down on Bitcoin, Acquiring 11 BTC Despite IMF Agreement

El Salvador has reaffirmed its dedication to Bitcoin, maintaining a strategy of active acquisition even after entering a financing agreement with the International Monetary Fund (IMF).

El Salvador purchased 11 more bitcoins on Monday, bringing the country’s total crypto holdings to more than 5,980 coins.

The latest batch of coins was bought at an average price of $96,463.09 each, according to the National Bitcoin Office. The total price paid was $1,061,053.

The government began adding bitcoin to its national treasury in September 2021, when it became the first country to legalize the cryptocurrency.

El Salvador’s bitcoin holdings are now worth more than $577 million, based on the latest price of bitcoin on Monday evening.

The government’s bitcoin purchases have slowed significantly in 2024, compared to last year, when President Nayib Bukele announced almost daily purchases of bitcoin.

However, officials at the National Bitcoin Office have said that the government plans to accelerate its bitcoin acquisitions in the coming months.

The government’s bitcoin purchases are part of a broader strategy to transform El Salvador into a crypto hub and to boost economic growth.

But the country’s bitcoin strategy has also faced pressure from the International Monetary Fund (IMF), which reached an agreement with El Salvador on a $1.4 billion loan in December.

As part of the agreement, the government pledged to scale back some of its bitcoin-related activities, including removing the mandatory requirement for businesses to accept bitcoin.

Instead, bitcoin acceptance will now be optional. Additionally, tax payments will only be accepted in the U.S. dollar, and the Chivo crypto wallet, a government-backed platform launched in 2021, will be phased out.

Despite these changes, the government has emphasized its commitment to bitcoin as legal tender.

Officials at the National Bitcoin Office said that the government plans to continue promoting bitcoin-related initiatives, including advancing capital markets, fostering private-sector bitcoin wallets, and supporting educational programs.

Blockchain developer training and financial literacy programs will also remain key priorities to strengthen the country’s cryptocurrency ecosystem.