TLDR
- El Salvador purchased 21 Bitcoin on September 7 to mark four years since making Bitcoin legal tender
- The country now holds 6,313 Bitcoin worth $701 million in its national reserve
- El Salvador continues buying Bitcoin despite IMF loan agreement requiring it to stop purchases
- The government has trained 80,000 public servants in Bitcoin and runs education programs
- Bitcoin purchases violate the $1.4 billion IMF deal but continue at 1 BTC per day since March 2024
El Salvador purchased 21 Bitcoin on September 7 to celebrate the fourth anniversary of its Bitcoin legal tender law. The symbolic purchase brings the Central American nation’s total Bitcoin holdings to 6,313 coins worth approximately $701 million.
President Nayib Bukele confirmed the Bitcoin acquisition through the country’s official Bitcoin Office. The 21 Bitcoin purchase references Bitcoin’s maximum supply limit of 21 million coins.
The latest Bitcoin purchase continues El Salvador’s daily accumulation strategy. Data shows the government has purchased 1 Bitcoin per day since March 2024, building one of the world’s largest sovereign Bitcoin reserves.
IMF Loan Agreement Creates Bitcoin Policy Conflict
El Salvador’s continued Bitcoin purchases violate a $1.4 billion loan agreement signed with the International Monetary Fund in December 2024. The IMF deal specifically requires the government to stop voluntary Bitcoin accumulation using public funds.
The loan agreement forced El Salvador to repeal its Bitcoin legal tender requirement. Under the new law, businesses can choose whether to accept Bitcoin payments, though Bitcoin remains legal tender alongside the US dollar.
El Salvador also agreed to reduce support for its Chivo Bitcoin wallet as part of the IMF conditions. The government-backed wallet saw limited adoption among local residents during its operation.
An IMF report from July confirmed El Salvador had not purchased additional Bitcoin since signing the loan agreement. However, the September 7 purchase appears to contradict this commitment to international lenders.
Bitcoin Education and Security Measures Continue
The Bitcoin Office reports 80,000 public servants have received Bitcoin certification as of 2025. The government maintains several public Bitcoin and artificial intelligence education programs for citizens.
El Salvador recently redistributed its Bitcoin holdings across multiple wallet addresses to improve security. Each new address holds a maximum of 500 Bitcoin to reduce quantum computing risks.
The government publishes all wallet addresses on a public dashboard for transparency. This allows independent verification of the country’s total Bitcoin holdings and transactions.
Critics argue El Salvador’s Bitcoin policies benefit government agencies more than average citizens. Some experts say more grassroots education is needed for local population adoption rather than focusing on institutional use.
El Salvador became the first country to adopt Bitcoin as legal tender in September 2021. The law aimed to increase financial inclusion and reduce remittance costs for citizens sending money from abroad.
An IMF report estimated El Salvador spent roughly $300 million on Bitcoin purchases since 2021. The fund calculated more than $400 million in unrealized gains at current Bitcoin prices for the government portfolio.
Future IMF loan disbursements depend on compliance reviews through 2027. The organization will monitor El Salvador’s adherence to loan conditions including the Bitcoin purchase restrictions.
