El Salvador Reaffirms BTC Commitment, Will Continue Accumulating Reserves

Highlights

Despite selling its Chivo wallet and IMF pressure, El Salvador plans to keep Bitcoin legal tender and buy more for its reserves
El Salvador's $1.4 billion IMF deal restricts Bitcoin use in the private sector and limits public sector involvement.
Despite government efforts, a large majority of Salvadorans haven't used Bitcoin in the past year.

El Salvador has reiterated its commitment to Bitcoin in spite of recent developments that saw its digital wallet, Chivo, being sold or retired. This is just days after the country sealed a $1.4 billion loan deal with the International Monetary Fund.

The deal forces the scaling back of Bitcoin policies, but the Salvadoran government remains undeterred in its quest to accumulate BTC for its strategic reserves.

El Salvador Reaffirms BTC Commitment, to Keep Accumulating Reserves

El Salvador recently struck a $1.4 billion deal with the International Monetary Fund (IMF). It is also looking to secure a $3.5 billion deal, but with certain concessions regarding Bitcoin (BTC) to secure the funding. As part of the agreement, the country has agreed to scale back its Bitcoin policies, particularly in relation to its official digital wallet, Chivo, which the country plans to sell or retire.

Stacey Herbert, the Director of the National Bitcoin Office, highlighted the fact that Bitcoin would keep on playing a critical role in the country’s financial strategy. She said that, while the Chivo wallet will stop being active, the government will speed up its buying of Bitcoin, continuing to add more BTC to its reserves.

🇸🇻EL SALVADOR SECURES $3.5 FUNDING DEAL

➡️Bitcoin remains legal tender
➡️El Salvador will continue buying bitcoin (at possibly an accelerated pace) for its Strategic Bitcoin Reserve
➡️Bitcoin capital markets will continue to be built; for example, the recent tokenized issuance…

— Stacy Herbert 🇸🇻🚀 (@stacyherbert) December 19, 2024

Presently, El Salvador holds 5,968.77 Bitcoin, which is nearly $596 million, with plans to purchase one Bitcoin per day.

The IMF required Bitcoin use in the private sector to be voluntary. It also limited public sector involvement in Bitcoin transactions.

Despite these restrictions, Herbert stated that many Bitcoin-related initiatives will continue. These include developing Bitcoin capital markets and expanding Bitcoin education programs.

Despite Incentives, Bitcoin Adoption Remains Low

In September 2021, El Salvador became the first country to adopt Bitcoin as legal tender. This decision was met with skepticism from the IMF due to Bitcoin’s high volatility. The IMF warned that Bitcoin’s adoption could risk future monetary aid to the country.

A 2023 survey showed that 88% of Salvadorans had not used Bitcoin in the past year. This highlighted poor national adoption of the cryptocurrency. The Chivo wallet once offered $30 in Bitcoin incentives to encourage sign-ups. Despite this, more than 60% of users never made a single transaction.

Despite these setbacks, President Nayib Bukele remains optimistic about Bitcoin’s role in the country’s economy. Earlier this month he celebrated the recent surge past $100,000. Recently, crypto exchange Bitget has achieved a significant milestone, becoming the first digital asset trading platform to be granted a license as a Bitcoin Service Provider by El Salvador’s Central Bank. This development comes after Bukele revealed that El Salvador’s Bitcoin holdings have generated an unrealized profit of $362 million.

Though the IMF agreement requires the country to make adjustments to its BTC strategy, the government remains determined to keep Bitcoin as legal tender and to expand its use in key economic initiatives.

Recommended
Price Analysis

Best Crypto Presales To Invest In September 2025 – Top Upcoming Presale Tokens

Best Crypto AI Trading Bots In 2025

Top Meme Coins To Buy In September 2025

Teuta Franjkovic

Teuta is a seasoned writer and editor with over 15 years of expertise in macroeconomics, technology, and the crypto and blockchain sectors. She began her career in 2005 as a lifestyle writer for *Cosmopolitan* before transitioning to business and economic reporting for renowned outlets like *Forbes* and *Bloomberg*. Inspired by thought leaders like Don and Alex Tapscott and Laura Shin, Teuta embraced blockchain's potential, viewing cryptocurrency as one of humanity's most transformative innovations. Since 2014, she has specialized in fintech, focusing on crypto, blockchain, NFTs, and Web3. Known for her strong collaboration and communication skills, Teuta also holds dual MAs in Political Science and Law.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.