El Salvador has bought 1,090 Bitcoin (BTC) after the price dropped below $90,000. This purchase is worth nearly $100 million. It raises the government’s total Bitcoin holdings to about 7,474 BTC, valued at roughly $670 million.
The country’s Bitcoin Office reported the purchase took place around 7:00 p.m. ET on Monday. Bitcoin’s price recently fell to a six-month low amid global market weakness. At the time of writing, Bitcoin traded near $89,916, down about 5% in 24 hours.
El Salvador’s Bitcoin Strategy and IMF Concerns
President Nayib Bukele shared a screenshot of the purchase on X, showing the government buying Bitcoin during market dips. Since November 2022, El Salvador has bought about 1 Bitcoin daily, along with occasional larger purchases.
However, questions remain about whether the government complied with its $1.3 billion loan agreement with the International Monetary Fund (IMF). The agreement restricts new public sector Bitcoin purchases.
The IMF has urged El Salvador to reduce its Bitcoin exposure because of price volatility. An IMF report suggested the higher Bitcoin reserves might reflect asset consolidation, not new buys. Still, President Bukele rejected claims that Bitcoin acquisitions would stop. He stated that the government will continue buying despite international pressure, saying, “Proof of work is greater than proof of whining.”
Bitcoin Use in El Salvador and Long-Term Plans
Stacy Herbert, Head of the Bitcoin Office, challenges the IMF’s view and confirms ongoing Bitcoin purchases. Despite making Bitcoin legal tender in 2021, most Salvadorans still prefer the U.S. dollar. It remains the main currency for people and businesses.
Government Bitcoin apps have seen mixed user engagement. However, El Salvador’s government views its Bitcoin policy as a long-term strategy. It plans to buy more coins during price dips. With about 7,474 BTC, El Salvador ranks among the largest government Bitcoin holders, after the U.S., China, and the U.K.
