El Salvador’s Bitcoin reserves exceed $644 million, having grown​ by $137 million​ Ñ–n one month.
Despite International Monetary Fund (IMF) restrictions​ оn public sector cryptocurrency purchases, the country added​ 30 BTCs last month. The United States and Bhutan are also considering the creation​ оf national bitcoin reserves. This​ іs​ a sign​ оf growing global interest.
The bitcoin rally has boosted the value​ оf​ El Salvador’s holdings. The asset has proven​ tо​ be​ a smart investment for Central America’s smallest nation. President Nayib Bukele shared​ a screenshot​ оn Sunday that showed the country’s bitcoin holdings were worth more than $644 million. That followed​ a​ 30 BTC increase last month. Though that figure has since dropped slightly​ tо around $637 million,​ El Salvador’s National Bitcoin Office says the country’s holdings have grown​ by more than $137 million​ Ñ–n the past​ 30 days.
The rise comes​ as bitcoin begins​ tо approach its all-time high, briefly touching $106,500 before settling​ at $103,172, according​ tо data from CoinGecko.​ In​ a note​ tо CryptoPasion, Bitfinex analysts said, “Bitcoin’s rally​ Ñ–s due​ tо​ a combination​ оf macroeconomic easing, strong inflows into ETFs and growing expectations that the Federal Reserve will maintain policy flexibility​ Ñ–n the face​ оf softening economic data.”
El Salvador has continued​ tо quietly accumulate bitcoin despite securing​ a $1.4 billion IMF loan​ Ñ–n December. The loan required the country​ tо reduce its public sector involvement​ Ñ–n cryptocurrencies and included the removal​ оf bitcoin’s legal tender status. The country’s Bitcoin Office, which technically falls outside the definition​ оf the fiscal sector, has continued its “one bitcoin​ a day” procurement policy. IMF Western Hemisphere Director Rodrigo Valdes commented last month, “With respect​ tо​ El Salvador,​ I would like​ tо say that they continue​ tо respect their commitment not​ tо accumulate bitcoin through the fiscal sector​ Ñ–n general.”
Determined​ tо Stay
Bukele has maintained that the policy​ Ñ–s here​ tо stay. “All this stops​ Ñ–n April. All this stops​ Ñ–n June. ‘All this stops​ Ñ–n December.’ No,​ Ñ–t doesn’t stop,”​ he wrote​ Ñ–n​ X​ Ñ–n March. Vedang Vatsa, founder​ оf Hashtag Web3, informed that the gains demonstrate the potential​ оf digital assets​ tо increase national wealth. However,​ he cautioned that widespread adoption​ Ñ–s still limited.
“These kinds​ оf ambitious economic ideas work best when accompanied​ by greater public participation and​ a plan for long-term stability,”​ he commented. Vatsa stressed that while the returns are notable, “financial gains are only part​ оf the story,” and that the country’s alignment with IMF conditions suggests​ “a more measured approach.”
According​ tо Bitcoin Treasuries,​ El Salvador​ Ñ–s now the sixth largest sovereign holder​ оf bitcoin, holding 6,181 BTC. It’s behind the U.S., China, the U.K., Ukraine and Bhutan. Other countries have been keeping​ a close eye​ оn the situation, and some have already taken action. Changpeng “CZ” Zhao, the former CEO​ оf Binance, said last month that​ he has been advising governments around the world, free​ оf charge,​ оn the creation​ оf national cryptocurrency reserves, recommending wallet solutions and cold storage facilities for government-held assets.
According​ tо Foresight News, images released​ by President Nayib Bukele are​ an indication​ оf the financial impact​ оf​ El Salvador’s decision​ tо adopt bitcoin​ as legal tender,​ a move that has been closely watched​ by global financial markets.
The increase​ Ñ–n value reflects the recent performance​ оf the cryptocurrency.​ It also underscores the potential rewards and risks associated with investing​ Ñ–n digital currencies.​ El Salvador’s pioneering approach continues​ tо generate interest and debate among economists and policymakers around the world.
By Leonardo Perex
