El Salvador has increased its Bitcoin reserves by 11 BTC (valued at over $1 million) as part of its ongoing strategy to bolster its Strategic Bitcoin Reserve. This move was announced by the country’s Bitcoin Office via Twitter on January 20, signaling continued commitment to its Bitcoin agenda despite external pressures.
The purchase comes shortly after El Salvador assured the International Monetary Fund (IMF) that it would limit Bitcoin adoption in exchange for a $1.4 billion loan agreement. In December 2024, the IMF requested that the nation scale back its Bitcoin-related initiatives, including ceasing the mandate for businesses to accept BTC and curbing public sector involvement in cryptocurrency activities.
El Salvador’s Bitcoin experiment, initiated in September 2021 when it became the first country to adopt BTC as legal tender alongside the U.S. dollar, has drawn mixed reactions. The IMF has repeatedly expressed concerns, citing potential risks to the country’s fiscal and financial stability. However, a 2023 IMF report acknowledged that many of the predicted risks “had not yet materialized” but emphasized the need for greater transparency and risk mitigation.
Stacy Herbert, head of the National Bitcoin Office, announced in late 2024 that El Salvador plans to accelerate BTC accumulation despite the IMF’s recommendations. This proactive approach indicates that the country remains steadfast in its belief in Bitcoin’s long-term potential, even as it balances external financial obligations.
By continuing to expand its Bitcoin reserves, El Salvador reinforces its position as a pioneer in national-level cryptocurrency adoption, maintaining its dual strategy of embracing BTC while negotiating with traditional financial institutions.