El Salvador Adds to Bitcoin Reserves, Challenges IMF Guidance
El Salvador added another Bitcoin (BTC) to its reserves today to mark Christmas Day, bringing the total to 5,997.77 BTC or around $595 million.
This comes as the International Monetary Fund (IMF) has been urging the country to slow down on its Bitcoin strategy. But officials from the Bitcoin Office said BTC acquisitions will continue “at an accelerated pace” as the country stays committed to its Bitcoin plan.
This is in line with President Nayib Bukele’s plan to integrate Bitcoin into the financial system. Recent purchases were 12 BTC on December 20, 12 BTC on December 21 and 1 BTC daily since then.
Comparing National Bitcoin Reserves
El Salvador is one of the few countries building Bitcoin reserves. Bhutan has been mining BTC since 2019 and has 11,688 BTC or $1.16 billion. That’s much bigger than El Salvador’s 5,997.77 BTC or $595 million.
The US and UK also have significant Bitcoin reserves but most of it is from criminal asset seizures. The US government has 198,109 BTC or $19.68 billion and the UK has 61,245 BTC or over $6 billion.
Unlike El Salvador and Bhutan which sees Bitcoin as a reserve, other countries liquidate seized BTC and don’t let it become a permanent asset.
The Bigger Picture: Bitcoin’s Role in National Strategy
El Salvador is going against the grain by deliberately breaking away from traditional financial norms. This makes the country a pioneer in using decentralized assets as a hedge against inflation and economic instability. Critics say it’s a risk but supporters see it as forward thinking.
With accelerated BTC accumulation and big things planned for 2025, El Salvador is setting a trend that may be followed by other countries that are considering cryptocurrency adoption. Whether this will bring economic resilience or more fiscal problems only time will tell but the global implications are huge.
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