El Salvador’s total Bitcoin holdings surpassed $700 million as the country celebrated the fourth anniversary of its landmark decision to adopt the cryptocurrency as legal tender.
Summary
- El Salvador purchased 21 BTC on Bitcoin Day.
- The country’s total holdings stand at 6,313.18 BTC, worth over $700 million.
- Critics have argued that El Salvador’s Bitcoin play has severe risks.
Data from the country’s Bitcoin Office, the administrative unit managing its Bitcoin holdings, shows that the nation holds 6,313.18 BTC, after a 21 BTC purchase executed on what it calls Bitcoin Day.
Based on current prices, El Salvador’s Bitcoin stash is valued at a little over $700 million when writing.
The 21 BTC acquisition deviates from the Bitcoin Office’s 1 Bitcoin a day policy that the country has adopted since its landmark Bitcoin Law was officially implemented.
Although El Salvador has occasionally executed bigger purchases, this recent one was a symbolic nod to Bitcoin’s 21 million supply cap and a reaffirmation of the government’s commitment, even as it navigates the tightrope of IMF obligations and public skepticism.
President Nayid Bukele proposed El Salvador’s Bitcoin law in 2021, which subsequently made the Latin American country the world’s first to adopt Bitcoin as a legal tender once the proposal was signed.
Although this marked a historic moment for both the country and the cryptocurrency industry, the decision has been met with a lot of criticism from economists who have warned about the volatility and macroeconomic risks involved.
One of the biggest critics of El Salvador’s Bitcoin move has been the International Monetary Fund (IMF). Since the early days of adoption, the global watchdog and lender has repeatedly warned that adopting such a volatile asset as legal tender could undermine financial stability, complicate monetary policy, and expose the country to various fiscal risks.
Fast forward to 2025, and the IMF compelled El Salvador to scale back its Bitcoin ambitions as a condition for a $1.4 billion loan agreement. To secure the deal, the government agreed to halt public Bitcoin purchases, repeal a clause that mandated merchants to accept Bitcoin, and shut down its Chivo wallet program.
Even the country’s periodic BTC purchase came under scrutiny after an IMF review published in July, which claimed El Salvador had stopped accumulating new Bitcoin back in February after signing the IMF deal, even as the country’s Bitcoin Office continued to announce fresh acquisitions on social media.
The report argued that these so-called purchases were in fact internal transfers between government-controlled wallets, not actual market buys.
Bitcoin remains a priority in El Salvador
Nevertheless, that hasn’t stopped El Salvador from actively promoting its Bitcoin agenda on the public front. In a Sept. 7 X post, the Bitcoin Office said roughly 80,000 public servants have now received Bitcoin certifications, adding that the country is also rolling out public education initiatives focused on both Bitcoin and artificial intelligence.
Last month, El Salvador’s National Assembly passed a new ’Investment Banking Law’ which sets up the provisions for select investment banks to be able to operate as official Bitcoin service providers, issuers, and digital asset managers under the supervision of the Central Reserve Bank (BCR) and the Superintendency of the Financial System (SSF).
Countries like Pakistan and Bolivia have also turned to El Salvador for guidance over their respective Bitcoin strategies.