El Salvador Defies IMF Agreement to Buy 12 More Bitcoin—Now Holds 6,044 BTC with $180M Profit

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El Salvador continues to make global headlines with its bold cryptocurrency strategy, purchasing an additional 12 Bitcoin (BTC) on January 19 and 20, 2025—despite ongoing negotiations and policy conditions tied to a major loan agreement with the International Monetary Fund (IMF). This latest acquisition brings the Central American nation’s total Bitcoin holdings to approximately 6,044 BTC, valued at over $610 million** at current market prices. More impressively, the country has now realized an estimated **$180 million in unrealized profit from its strategic digital asset reserves.

This move reaffirms El Salvador’s unwavering commitment to Bitcoin as both legal tender and a long-term national investment, even amid international scrutiny and economic pressure.

📈 Continued Bitcoin Accumulation Despite IMF Conditions

According to official updates from the National Bitcoin Office of El Salvador, the country acquired 11 BTC on January 19, followed by 1 BTC the next day, spending more than $1 million across the two transactions. These purchases were confirmed via the office’s official X (formerly Twitter) account, reinforcing transparency in its digital asset strategy.

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This latest buy signals a clear message: El Salvador remains undeterred in expanding its Bitcoin reserves, regardless of external economic agreements. The nation now holds one of the largest government-owned Bitcoin portfolios globally, surpassing many institutional investors and rivaling major public crypto firms in scale.

🤝 IMF Loan Deal and Its Impact on Crypto Policy

In December 2024, El Salvador reached a landmark $1.4 billion financial assistance agreement with the IMF, aimed at stabilizing public finances and supporting economic reforms. As part of the agreement, the IMF recommended that El Salvador limit or suspend further Bitcoin purchases, citing fiscal risks and concerns over macroeconomic stability.

However, just days after finalizing the deal, the government resumed its Bitcoin accumulation strategy—prompting debate among economists and policymakers worldwide.

Stacy Herbert, Director of El Salvador’s National Bitcoin Office, publicly stated that the country’s Bitcoin acquisition plan “remains unaffected” by the IMF’s stipulations. In a now-viral tweet, she emphasized that Bitcoin is not merely a speculative asset but a strategic reserve instrument designed to strengthen national wealth over time.

This defiance highlights a growing trend: sovereign nations leveraging decentralized assets to assert financial independence, reduce reliance on traditional banking systems, and hedge against inflation and currency devaluation.

💡 Why Bitcoin as a National Reserve Makes Strategic Sense

Since becoming the first country in the world to adopt Bitcoin as legal tender in September 2021, El Salvador has positioned itself as a pioneer in blockchain-based economic transformation. While critics initially questioned the viability of such a move, the results speak for themselves:

By consistently buying the dip and holding through volatility, El Salvador has turned early skepticism into measurable financial success.

Bitcoin’s performance as a store of value—often compared to “digital gold”—has proven beneficial for nations seeking alternatives to traditional reserve assets like U.S. Treasury bonds or foreign currencies. For a small, dollarized economy like El Salvador’s, diversifying into Bitcoin offers long-term upside potential while promoting financial innovation.

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Moreover, infrastructure development tied to Bitcoin—such as the government-backed Bitcoin-backed bonds and plans for volcano-powered crypto mining—demonstrates a holistic vision beyond mere speculation.

🧩 Public Adoption vs. Government Strategy: A Growing Gap?

Despite impressive gains on paper, widespread domestic use of Bitcoin remains limited. A survey conducted in October 2024 revealed that 92% of Salvadorans do not use Bitcoin for daily transactions—up from 88% in 2023. This suggests that while the government pushes forward with top-down adoption, grassroots usage has not kept pace.

Several factors contribute to this disconnect:

Still, the government continues investing in education and infrastructure. Initiatives like Chivo Wallet—the state-run digital wallet—and free Wi-Fi zones in major cities aim to lower barriers to entry and foster broader adoption over time.

The long-term goal isn’t just transactional use—it’s financial inclusion, remittance optimization, and economic sovereignty. Over 70% of Salvadorans rely on remittances, which traditionally incur high fees. With Bitcoin and Lightning Network solutions, those costs can be slashed dramatically.

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❓ Frequently Asked Questions (FAQ)

Why is El Salvador buying more Bitcoin despite IMF warnings?

El Salvador views Bitcoin as a long-term strategic asset to diversify its reserves, reduce dependency on the U.S. dollar, and build national wealth. While the IMF expressed caution over fiscal risks, the government believes in Bitcoin’s appreciation potential and its role in financial innovation.

How much profit has El Salvador made from Bitcoin?

As of January 2025, El Salvador has realized approximately **$180 million in unrealized gains** based on its average purchase price (estimated under $20,000 per BTC) versus current market value (~$100,000+ per BTC).

Is Bitcoin widely used in El Salvador?

No. Despite being legal tender since 2021, over 90% of citizens do not use Bitcoin for daily transactions, according to recent surveys. Adoption remains low due to usability challenges and preference for traditional payment methods.

Does El Salvador still plan to issue Bitcoin-backed bonds?

Yes. The government has reiterated plans to launch sovereign bonds backed by Bitcoin revenue streams, including mining profits and asset appreciation. These are expected to attract institutional investors interested in crypto-native fiscal instruments.

Could other countries follow El Salvador’s model?

Several nations—including Paraguay, Panama, and some African economies—are studying similar frameworks. While full legal tender status may be rare, increased interest in holding Bitcoin as a reserve asset is growing globally.

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What are the risks of a country holding Bitcoin?

Key risks include price volatility, regulatory uncertainty, cybersecurity threats, and potential reputational damage if prices drop sharply. However, long-term holders like El Salvador bet that these short-term fluctuations are outweighed by transformative economic opportunities.

🏁 Conclusion: A Bold Experiment with Global Implications

El Salvador’s decision to continue buying Bitcoin—even after securing an IMF deal—cements its status as a trailblazer in digital finance. Whether judged by profit metrics, geopolitical signaling, or technological ambition, the nation’s strategy has already influenced how governments view decentralized assets.

While challenges remain—particularly around public adoption and international oversight—the core idea is gaining traction: Bitcoin can be more than money; it can be national policy.

As global economic landscapes evolve, El Salvador’s experiment may serve as either a blueprint or a cautionary tale—but one thing is certain: it cannot be ignored.