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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Dec 20, 2024 06:32 UTC
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El Salvador Bitcoin Holdings Explode 133% Despite IMF’s Warnings
El Salvador's Bitcoin holdings grow 133%, now valued at $632 million amid price surges.
El Salvador commits to buying 1 Bitcoin daily to boost strategic reserves.
IMF advises limiting Bitcoin investments; El Salvador defies with more BTC acquisitions.
Despite repeated warnings from the International Monetary Fund (IMF) to reduce its Bitcoin investments, El Salvador, the first country to make Bitcoin legal tender, remains undeterred. Recently, the nation’s Bitcoin Office announced a $1 million addition to its Strategic Bitcoin Reserve. This bold strategy seems to be paying off, as El Salvador’s Bitcoin portfolio has surged by 133%, now valued at an impressive $632 million.
What drives this relentless commitment to Bitcoin despite international pressure?
$1 Million Bitcoin Purchase
El Salvador’s Bitcoin Office shared on social media that $1 million worth of Bitcoin was added to the country’s reserves. Reports confirm that a government-linked wallet purchased 11 Bitcoins, valued at approximately $1.07 million, further boosting the nation’s holdings.
This acquisition aligns with President Nayib Bukele’s ongoing plan to purchase 1 Bitcoin daily.
This consistent effort highlights El Salvador’s strong belief in Bitcoin as a key part of its financial strategy.
Bitcoin Portfolio Hits $632 Million
President Bukele proudly announced that El Salvador’s Bitcoin holdings have reached $632 million, marking a 133% increase from their original value. Starting with 5,966 Bitcoins worth $270 million, the portfolio has grown significantly as Bitcoin’s price rose above $106,000 per coin.
By steadily increasing its Bitcoin reserves, El Salvador is strengthening its presence in the global cryptocurrency market and banking on greater returns in the future.
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Understanding IMF’s Concerns
El Salvador’s Bitcoin strategy has drawn both support and criticism. Recently, with Bitcoin’s price falling below $100,000, the IMF reiterated its warnings, urging the country to limit its cryptocurrency investments. However, El Salvador has remained firm in its approach.
Stacy Herbert, director of El Salvador’s Bitcoin Office, responded to the IMF’s concerns on X (formerly Twitter), emphasizing that Bitcoin will remain legal tender in the country. She also confirmed the government’s commitment to adding more Bitcoin to its reserves.
Additionally, El Salvador secured a $1.4 billion loan from the IMF. As part of the agreement, the government pledged to modify some Bitcoin-related policies and confirmed that taxes would be paid exclusively in U.S. dollars, the country’s other official currency.
Despite the IMF’s warnings, El Salvador is still sticking to its Bitcoin plan, showing its belief in the long-term potential of cryptocurrency.
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FAQs
El Salvador’s Bitcoin holdings have surged to $632 million, a 133% increase from its initial value of $270 million.
By increasing its Bitcoin reserves, El Salvador is enhancing its global cryptocurrency presence and banking on future returns
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