San Salvador: El Salvador has announced an additional bitcoin purchase, increasing the country’s strategic reserve to over 6,102 coins, the National Bitcoin Office revealed in a social media post on Wednesday.
The announcement comes just days after the International Monetary Fund (IMF) board approved a 40-month, $1.4 billion program with El Salvador. The agreement signaled a shift in the cryptocurrency’s standing within the country, as bitcoin can no longer be used to pay taxes, and its public acceptance remains voluntary—contrary to initial expectations when it was granted legal tender status in 2021.
Crucially, the Salvadoran government has assured the IMF that it will not accumulate further bitcoin holdings at the level of the broader public sector.
“We consulted with the (Salvadoran) authorities, and they have assured us that the recent increase in Bitcoin holdings in the Strategic Bitcoin Reserve Fund is consistent with agreed program conditionality,” an IMF spokesperson stated.
The IMF did not provide further clarification on how bitcoin purchases by the National Bitcoin Office align with the government’s commitment to limit exposure to the cryptocurrency. Meanwhile, the Salvadoran Presidential House has yet to respond to requests for comment.
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Following the announcement, Salvadoran dollar bonds showed declines, with the 2050 and 2041 maturities falling by 0.75 cents on the dollar on Wednesday.
Since the IMF board’s approval last week, El Salvador has purchased an additional 12 bitcoins. The government currently holds nearly $550 million in bitcoin, according to official figures.
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