Published: January 22, 2025 at 5:03 am
Updated on January 22, 2025 at 5:03 am
El Salvador is back in the news with their unconventional approach to Bitcoin. The small Central American nation is not just buying Bitcoin but is ramping up its purchases, all while dealing with international financial institutions that aren’t exactly cheerleading their moves. After signing an agreement with the IMF, which was supposed to tone down their crypto strategies, they went ahead and bought 12 more BTC. It’s like they’re saying, “We hear you, but we’re still doing our thing.”
The National Bitcoin Office recently announced that El Salvador has added 12 BTC to its Strategic Bitcoin Reserve. This latest purchase was made in two parts: one transaction of 11 BTC for over $1 million and another for a single Bitcoin at $106,000. This takes their total holdings to 6,044 BTC, worth around $620 million, with Bitcoin trading above $103,000 at the moment.
El Salvador is clearly not backing down from their commitment to Bitcoin. I mean, they could have taken a step back after the IMF agreement, but they didn’t. They bought a million bucks’ worth of BTC the very next day. They seem to have a plan, and they’re sticking to it.
Now, the IMF deal might have put some pressure on them, but it was more about changing the narrative than actually changing the strategy. The agreement required them to make Bitcoin acceptance optional for businesses and to give the Chivo wallet, their digital currency trading app, a bit of distance from government operations. But it seems like the country’s commitment to Bitcoin remains intact.
With this commitment, it’s no wonder that major players are taking an interest in the country. Bitfinex Securities launched tokenized US Treasury bills there last year. They were trying to raise $30 million and give investors a shot at short-term Treasury bonds using blockchain tech. Sounds interesting, right?
And now Tether, the issuer of USDT, has also set its sights on El Salvador. They announced they’ve moved to the country after acquiring a DASP license there. The move is part of Tether’s plan to support Bitcoin’s global adoption and innovation in emerging markets. Their CEO pointed out El Salvador’s supportive environment for digital assets, which makes it a good place for them to be.
El Salvador’s approach to Bitcoin is certainly unorthodox. They seem to be all in, even if it means going against the tide of what global financial institutions would prefer. Whether this is a long-term winning strategy remains to be seen, but it’s certainly an interesting case study in cryptocurrency and trading.
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