El Salvador buys 11 more Bitcoin, boosting reserves to 6,067 BTC

El Salvador bought 11 more Bitcoins on February 4 to boost its BTC strategic reserve. The country had earlier adopted a style of acquiring one BTC per day but has lately accelerated its Bitcoin purchases.

According to the Nayib Bukele Bitcoin tracker, El Salvador holds 6067.18 Bitcoins, currently valued at $616,049,642. The country has purchased more than 20 Bitcoins in the last seven days.

El Salvador entered a deal with the IMF to remove BTC as a legal tender. The deal with the IMF received mixed reactions from crypto lovers, who felt it would corrode El Salvador’s gains as a crypto hub in South America. 

Analysts believed the IMF deal would ensure the country’s slowdown in crypto activities, but that seems not to be the case. El Salvador has continued to pile BTC for its National Reserve.

As part of the $1.4 billion IMF deal, El Salvador had to make BTC payments voluntary, “confine” public sector involvement in the Bitcoin industry, and privatize the Chivo wallet. 

The country acquired 11 BTC, valued at over $1 million, one day after signing the deal with the IMF.

El Salvador Bitcoin reserve has continuously drawn mixed reactions from global players

The El Salvador Bitcoin project has led to debates at various levels. Financial institutions and economic experts hail the country for its BTC adoption strategy and progressive policy of establishing El Salvador as a Bitcoin hub. 

However, many experts warn that market volatility and the regulatory landscape may inconvenience the country.

The IMF and other organizations are concerned about Bitcoin’s influence on financial stability. Yet, recent purchases show that the country’s commitment to accruing the crypto due to its potential advantages is on course. The president has always believed crypto adoption enhances economic diversification and financial inclusion.

The El Salvador Bitcoin adventure is ongoing, but no one knows its long-term success. The accelerated purchases may be very productive for the country’s economy, or the market volatility may trigger serious drawbacks; only time will tell.

El Salvador has shown consistency in its BTC reserve strategy even after lawmakers stripped off the coin as a legal tender

The Spanish newspaper El Pais, reported on February 2 that the latest developments are not encouraging to crypto enthusiasts. The newspaper stated that El Salvador would lose its legal tender status. 

The report clarifies that the El Salvador congress discussed and passed a reformed Bitcoin Act, which canceled BTC as a legal tender. The report noted that the decision was made under pressure from the International Monetary Fund (IMF) to meet the agreement for obtaining a $1.4 billion loan.

The new Bitcoin Act stipulates that BTC is not a currency in the country. However, it doesn’t limit merchants who are comfortable and willing to transact in it. 

BTC is now voluntary, and no one can be forced to accept it as a form of payment. Alternatively, two parties can use the crypto as a payment tool if both of them agree to use it as a mode of payment. Alongside the payment option, it cannot be used to pay taxes.

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