El Salvador is back in the Bitcoin game, and this time they’ve upped their ante.
Typically, they’ve been on a steady diet of one Bitcoin per day as part of their grand strategy to build a Bitcoin reserve, but it looks like they’re feeling a bit adventurous lately, so in February 1, they bought two.
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Strategic Bitcoin reserve
As of now, El Salvador owns a total of 6,055 BTC, which is worth over $612 million. And they’ve gobbled up more than 50 Bitcoins in just the last month.
Now, here’s where it gets juicy, as El Salvador had to dial back its legal tender law that required businesses to accept Bitcoin for payments.
Why? To secure a loan from the International Monetary Fund. But don’t let that fool you, the country is still committed to stacking up those Bitcoins for its national reserve.
As part of the $1.4 billion deal with the IMF, El Salvador had to make Bitcoin payments optional and limit public sector involvement in the crypto industry. They even decided to privatize their Chivo wallet.
Sticking to the plan
But just a day after signing that IMF deal, guess what? They went ahead and bought 11 more BTC, valued at over $1 million.
Stacy Herbert, the director of El Salvador’s National Bitcoin Office, hinted back in December that they might start ramping up their Bitcoin purchases.
And lo and behold, they added another 12 BTC on January 19. Government spokespeople even shared that they’re planning to kick things into high gear with their buying spree in 2025.
“We’ve pulled off not just the greatest rebranding act ever but have also turned into a real-life case study for how to win with a national strategy.”
Being pioneer
El Salvador’s move has caught the attention of Bitcoin enthusiasts and crypto firms alike, even Fidelity Digital Assets is watching closely.
Their January 2025 report pointed out that El Salvador’s approach could inspire other countries to jump on the Bitcoin bandwagon.
Analysts think that as larger nations see the risks of not owning any Bitcoin, the fear of missing out could push them to follow in El Salvador’s footsteps, and they’re pretty likely right.
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