El Salvador resumes Bitcoin purchases, adds 7 BTC to holdings

El Salvador has resumed Bitcoin acquisitions, buying seven BTC equivalent to $661,000 per Arkham Intelligence reports. This is the first time it has made a Bitcoin purchase since it halted its daily purchase plan on February 18.

Currently, the Central American nation holds 6,088 BTC, which is equal to approximately $558 million at the current rate. The government of El Salvador earlier pledged to buy one Bitcoin per day, a policy that began in November 2022.

The halt in purchases was witnessed right after a 40-month EFF arrangement with the International Monetary Fund or IMF. According to the agreement, which aims to achieve more than $3.5 billion in financial contributions, El Salvador had to make some modifications to the rules related to Bitcoins.

Among these changes, the country made the acceptance of Bitcoin by private entities optional. However, they will be required to clear transactions in the legal tender of the country but have the freedom to use bitcoins. To meet these conditions, lawmakers enacted amendments to the Bitcoin law in January 2025.

The IMF has always warned of the financial risks associated with El Salvador’s plans to use Bitcoin. In December 2024, the organization obtained a $1.4 billion loan from the country to scale back Bitcoin adoption.

While earlier, it was thought that the IMF agreement would limit Bitcoin investments, El Salvador ramped up purchasing outside of its daily plan. In December 2024, the government added $1 million worth of Bitcoin to the reserve. On February 4, it bought 11 BTC for a value of more than $1 million.

There has also been a more general change in policy. In March 2024, El Salvador’s president Nayib Bukele transferred Bitcoin holdings to a cold storage wallet, indicating a change of guard in the regulation. At the time, over $400 million worth of Bitcoin was held in El Salvador by 5,600 BTC.

El Salvador’s market impact

El Salvador’s Bitcoin policy involving the country’s adoption of Bitcoin as currency has influenced market sentiment, affecting Bitcoin’s volatility. The latest acquisition occurred after the price was below $95,000 due to U.S. President Donald Trump’s announcement on tariffs.

The sudden decline led to $950 million in liquidations across cryptocurrency platforms. At press time, Bitcoin traded around $91,000, down 4% in 24 hours.

“El Salvador finally abandoned its failed experiment of using Bitcoin as legal tender. After two years, only 8% of Salvadorans used Bitcoin even once. If Bitcoin can’t function as a medium of exchange—the purpose for which it was created—what value does it have that can be stored?” – Peter Schiff.

El Salvador became the first nation to legalize Bitcoin as a legal tender in September 2021, requiring companies to accept it as payment. The government bought its first Bitcoin in the same month in order to start adopting Bitcoin in the financial system. However, statistics reveal that the use of Bitcoin for transactions by the Salvadorans remains low despite its recognition.

Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More