El Salvador Adds 11 Bitcoin to National Reserve, Total Reaches 6,067 BTC

Highlights:

• El Salvador continues to increase its Bitcoin reserves, now holding over 6,000 BTC.
• President Bukele remains a strong advocate for Bitcoin despite recent policy changes.
• The country repealed Bitcoin’s legal tender status to secure a $1.4 billion IMF loan.

On-chain data reveals that El Salvador has increased its Bitcoin reserves by purchasing 11 BTC on February 3. This purchase coincides with Bitcoin’s rebound above $98,000, bringing its estimated value to around $1.1 million.

El Salvador initially followed a strategy of acquiring one Bitcoin daily but has recently sped up its Bitcoin acquisitions. As per the Nayib Bukele Bitcoin tracker, the country currently holds 6,067.18 Bitcoins, worth approximately $616,049,642. Over the past week, El Salvador has bought more than 20 Bitcoins. 

Following the recent purchase, President Nayib Bukele took to X (formerly Twitter) to highlight the acquisition, using the “eyes” emoji—a symbol often interpreted as drawing attention or signaling anticipation. Bukele has consistently advocated for Bitcoin since its adoption as legal tender in 2021. Despite recent policy changes influenced by global financial institutions, El Salvador continues to be the first country to integrate Bitcoin into its economy on such a scale.

👀 pic.twitter.com/43pCyvNILP

— Nayib Bukele (@nayibbukele) February 4, 2025

El Salvador Removes Bitcoin as Legal Tender to Receive IMF Loan

To secure a loan from the IMF, the country recently repealed its legal tender law, which required businesses to accept BTC as payment.

El Salvador initially designated Bitcoin as an official currency, allowing it to be used for business payments. However, recent changes to the legislation have altered this stance. On January 30, the Salvadoran Parliament passed reforms to the Bitcoin Law, removing its status as legal tender. Bitcoin is now optional, and no one is required to accept it as payment. However, two parties can use it for transactions if both mutually agree. Additionally, Bitcoin is no longer permitted for tax payments.

The reform was approved with 55 votes in favor and just two opposing. Elisa Rosales emphasized that the change was made to ensure Bitcoin remains recognized as legal tender while making its adoption and use easier in practice.

El Salvador's Congress has quickly approved legislation to amend its Bitcoin laws to comply with an agreement with the IMF to adjust its cryptocurrency exposure. The IMF asked the Bukele government to reduce its involvement in Bitcoin and make Bitcoin optional and voluntary for…

— Wu Blockchain (@WuBlockchain) January 30, 2025

IMF’s Stance on Bitcoin

In 2022, the IMF urged El Salvador to revise its Bitcoin policy, recommending the removal of its legal tender status. In December, El Salvador secured a $1.4 billion loan from the IMF. The lender asked the country to reduce its Bitcoin exposure.

Under the agreement, the IMF stated:

“The potential risks of the Bitcoin project will be diminished significantly in line with Fund policies. Legal reforms will make acceptance of Bitcoin by the private sector voluntary. For the public sector, engagement in Bitcoin-related economic activities and transactions in and purchases of Bitcoin will be confined.”

Analysts expected the IMF deal to slow El Salvador’s crypto activities, but the country has continued accumulating Bitcoin for its National Reserve. El Salvador also launched a national digital wallet known as Chivo. Last year, the IMF stated that the government’s involvement in the Chivo wallet would gradually decrease.