El Salvador has made another significant addition to its bitcoin reserves, purchasing one more bitcoin and pushing the country’s total holdings to over 6,102 coins, as confirmed by the National Bitcoin Office on Wednesday.
This announcement comes just days after the International Monetary Fund (IMF) approved a 40-month program for El Salvador, valued at $1.4 billion. This agreement marked a shift in the country’s stance on cryptocurrency, downgrading the role of bitcoin, which had previously been granted legal tender status in 2021. As per the new conditions, bitcoin cannot be used for tax payments, and its adoption by the public remains voluntary, contrary to earlier expectations of widespread use.
In response to the IMF’s concerns, the Salvadoran government has assured that it will not increase bitcoin holdings at the level of the public sector. “We consulted with the Salvadoran authorities, and they have assured us that the recent increase in Bitcoin holdings in the Strategic Bitcoin Reserve Fund is consistent with the agreed program conditionality,” a spokesperson for the IMF stated.
However, the IMF declined to address questions about how these purchases, managed by the National Bitcoin Office, might affect the government’s overall exposure to the volatile cryptocurrency.
The Salvadoran Presidential House did not immediately respond to requests for comment.
On Wednesday, El Salvador’s dollar-denominated bonds saw a slight dip, with the 2050 and 2041 maturities losing 0.75 cents on the dollar.
Since the IMF’s approval of the agreement last week, El Salvador has acquired a total of 12 bitcoins. As of now, the government’s bitcoin reserves are valued at approximately $550 million.
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