El Salvador purchased $1 million worth of Bitcoin on December 19th, shortly after securing a $1.4 billion financing agreement with the International Monetary Fund (IMF). 

The agreement includes provisions to limit government involvement in Bitcoin and cryptocurrency-related activities.

The Bitcoin Office announced the acquisition on X, noting the addition of 11 Bitcoin to the country’s Strategic Bitcoin Reserve. 

This brings El Salvador’s total Bitcoin holdings to 5,980.77 Bitcoin, valued at approximately $580 million with Bitcoin trading around $97,000.

The purchase marks a departure from the “one Bitcoin per day” strategy initiated by President Nayib Bukele in November 2022. 

Stacy Herbert, director of the National Bitcoin Office, stated on X that future Bitcoin purchases may accelerate.

The IMF agreement, reached on December 18th, outlines conditions requiring El Salvador to confine its Bitcoin-related activities. 

These include ensuring private-sector Bitcoin use remains voluntary, mandating taxes be payable in U.S. dollars, and winding down government involvement in the Chivo wallet.

A spokesperson for the National Bitcoin Office confirmed that the country plans to continue acquiring Bitcoin and has no intention of selling its current holdings.

El Salvador became the first country to adopt Bitcoin as legal tender in September 2021. 

Herbert affirmed that Bitcoin’s legal status remains unchanged, while the government’s Chivo wallet is expected to be sold or discontinued, leaving private-sector wallets to serve users.

The IMF Executive Board has yet to approve the financing deal, which would conclude prolonged negotiations complicated by concerns over the risks associated with El Salvador’s Bitcoin policies.

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