Smaller nation-states adopting Bitcoin as a strategic asset may serve as a catalyst for larger countries to follow suit.
On February 1, El Salvador acquired two additional Bitcoin (BTC). While the country typically purchases one Bitcoin per day as part of its Bitcoin reserve strategy, the rate of acquisition has recently accelerated.
According to the government’s official Bitcoin tracker, El Salvador now holds a total of 6,055 Bitcoin, valued at over $612 million. More than 50 BTC were purchased in the last 30 days alone.
This accumulation continues despite the country’s recent decision to abolish regulations that required businesses to accept BTC as a form of payment—a move made in accordance with agreements tied to a loan from the International Monetary Fund (IMF).
El Salvador’s Persistent Bitcoin Strategy
As part of a $1.4 billion agreement with the IMF, El Salvador agreed to voluntarily pay in BTC, limit public sector involvement in Bitcoin-related industries, and transition the Chivo wallet to private management.
The day after finalizing the agreement with the IMF, the government acquired 11 BTC, worth over $1 million at the time.
Stacy Herbert, Director of the National Bitcoin Office, suggested in a December 19 post that the country might begin accelerating its Bitcoin purchases.
On January 19, the National Bitcoin Office purchased another 12 BTC. Following the acquisition, a spokesperson for the government agency informed media outlets that El Salvador plans to increase its purchasing efforts throughout 2025.
The spokesperson stated, “We have not only achieved the greatest brand transformation in history but have also become a real-world example of national strategic success.”
Broader Implications and Institutional Interest
El Salvador’s fiscal Bitcoin strategy has drawn both praise from Bitcoin maximalists and attention from major financial and digital asset firms, including Fidelity Digital Assets.
In a report titled “2025 Outlook,” published in January, Fidelity Digital Assets highlighted El Salvador’s Bitcoin strategy as a potential catalyst for broader adoption among nation-states.
Analysts at the firm suggested that as the risks of holding no Bitcoin become more evident, more countries may adopt Bitcoin due to fear of missing out on its potential benefits.
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Frequently Asked Questions
Why is El Salvador buying Bitcoin?
El Salvador is accumulating Bitcoin as part of its national reserve strategy, aiming to diversify its assets and strengthen its financial independence. The government views Bitcoin as a long-term store of value.
How many Bitcoins does El Salvador own?
As of recent updates, El Salvador holds 6,055 BTC, with a market value exceeding $612 million. The government continues to purchase BTC on a daily basis.
What was the IMF’s role in El Salvador’s Bitcoin policy?
The IMF recommended that El Salvador limit its public Bitcoin exposure as part of a loan agreement. Despite this, the country has continued to buy and hold Bitcoin as a strategic asset.
Are other countries expected to follow El Salvador’s example?
Analysts from firms like Fidelity Digital Assets believe that other nations may begin adopting Bitcoin as a reserve asset, especially as the potential drawbacks of owning none become more apparent.
Is Bitcoin legal tender in El Salvador?
Yes, Bitcoin remains legal tender in El Salvador, though mandatory acceptance by businesses was lifted as part of the IMF agreement.
What is the National Bitcoin Office?
It is a government agency in El Salvador responsible for managing the country’s Bitcoin-related initiatives, including acquisition and regulation.