El Salvador has significantly expanded its Strategic Bitcoin Reserve by purchasing $1 million worth of BTC following a recent policy review and financing deal.
According to an update from the National Bitcoin Office, the country added 11 Bitcoin tokens to its holdings in a single transaction. This acquisition, reflected on the official website, brings El Salvador’s total Bitcoin reserve to 5,980.77 BTC, valued at approximately $586.5 million.
The move represents a notable shift from its previous strategy of daily Bitcoin purchases, which began on November 18, 2022, as announced by President Nayib Bukele.
Bitcoin Office Outlines Accelerated Plans
The purchase comes a day after National Bitcoin Office Director Stacy Herbert announced plans to potentially accelerate Bitcoin purchases. In a December 19 update, the director emphasized the office’s commitment to ongoing Bitcoin acquisitions, strengthening Bitcoin capital markets, and fostering education initiatives.
🇸🇻EL SALVADOR SECURES $3.5 FUNDING DEAL
➡️Bitcoin remains legal tender
➡️El Salvador will continue buying bitcoin (at possibly an accelerated pace) for its Strategic Bitcoin Reserve
➡️Bitcoin capital markets will continue to be built; for example, the recent tokenized issuance…— Stacy Herbert 🇸🇻🚀 (@stacyherbert) December 19, 2024
Among these initiatives are new educational programs, including Grades 2 and 3 Little HODLer workbooks on Bitcoin and money, set for release in January 2025.
Other efforts include the continued development of Bitcoin policy, attracting investors, and building education programs for developers and public servants.
For instance, the CUBO+ program will graduate more than 20 Bitcoin and Lightning developers by January 2025, while the Mi Primer Bitcoin and Node Nation initiatives remain active in high schools across El Salvador.
Additionally, 80,000 civil servants are undergoing Bitcoin certification through the ESIAP program. The Chivo Wallet, previously introduced by the government, will be wound down, with private-sector Bitcoin wallets continuing to serve the population.
Revised Bitcoin Law and IMF Agreement
This strategic Bitcoin acquisition and subsequent plans follow El Salvador’s revised Bitcoin law, which aims to limit public sector exposure and is tied to securing a $3.5 billion financing deal. The agreement includes $1.4 billion under an Extended Fund Facility with the International Monetary Fund (IMF) and contributions from the World Bank and regional development banks.
As part of the financing conditions, El Salvador’s public sector involvement in Bitcoin-related activities will be scaled back, and the use of Bitcoin in the private sector will remain voluntary.
Meanwhile, taxes will continue to be payable exclusively in U.S. dollars. The IMF also highlighted the importance of robust digital asset regulation and supervision to ensure financial stability and consumer protection.
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