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El Salvador purchased 11 Bitcoin only a day after reaching a $1.4 million IMF loan deal that called to reduce public sector engagement in “Bitcoin-related economic activities.”
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El Salvador added $1 million worth of Bitcoin in a single day — only a day after striking a $1.4 billion deal with the International Monetary Fund that stipulated limits on dealing with the cryptocurrency.
The country’s National Bitcoin Office wrote in a Dec. 19 X post that it had “transferred over a million dollars worth of Bitcoin to our Strategic Bitcoin Reserve,” with its website showing it added 11 Bitcoin (BTC) to its holdings.
The move breaks its long-running streak of adding “one Bitcoin per day,” which President Nayib Bukele announced in November 2022 and brings the country’s holdings to 5,980.77 BTC, worth around $580 million, with BTC trading at around $97,000.
National Bitcoin Office director Stacy Herbert said in a Dec. 19 X post that El Salvador “will continue buying Bitcoin (at possibly an accelerated pace).”
On Dec. 18, Bukele’s government struck a financing agreement with the IMF, which asked the country’s government to wind down some of its Bitcoin dealings to receive $1.4 billion from the global lender over the next 40 months.
The IMF said that, as part of the deal, El Salvador’s government-led Bitcoin activity, transactions, and purchases would “be confined.”
The country also agreed to make private sector acceptance of Bitcoin voluntary, allow for taxes only to be paid in US dollars and unwind its government’s involvement in its Chivo crypto wallet.
A Bitcoin Office spokesperson told Cointelegraph at the time that it “will keep buying one Bitcoin a day (likely even more in the future), and we will not sell any of our current holdings” and added that “Bitcoin continues to be our main strategy.”
Related: El Salvador to extend crypto agreements beyond Argentina
El Salvador was the first country to make Bitcoin a legal tender in September 2021, and Herbert said that the policy would remain unchanged.
Source: Stacy Herbert
She added the government-issued Chivo wallet “will be sold or wound down” and expected private sector Bitcoin wallets would “continue serving El Salvador.”
The IMF Executive Board still needs to approve the deal with the country, which would mark the end of four years of negotiations strained by Bukele’s Bitcoin policies, which the IMF said put the country at risk.
Big Questions: How can Bitcoin payments stage a comeback?
This article first appeared at Cointelegraph.com News
