El Salvador adds 12 BTC to reserves despite IMF agreement

El Salvador has recently strengthened its Bitcoin (CRYPTO:BTC) reserves by acquiring 12 BTC, a move that underscores the country's ongoing commitment to cryptocurrency despite a recent agreement with the International Monetary Fund (IMF) to scale back certain crypto policies.

On January 19, the National Bitcoin Office announced the purchase of 11 BTC, valued at over $1 million, followed by an additional Bitcoin on January 20 for approximately $106,000.

This brings El Salvador's total Bitcoin holdings to 6,044 BTC, valued at around $620 million as Bitcoin trades above $103,000.

The agreement with the IMF, which secured $1.4 billion in financing for El Salvador, includes stipulations that require the government to reduce its involvement in cryptocurrency initiatives.

Specifically, it mandates making Bitcoin acceptance optional for businesses and scaling back government participation in the Chivo wallet project.

Despite these conditions, El Salvador's recent Bitcoin purchases reflect a steadfast approach to its crypto strategy.

National Bitcoin Office Director Stacy Herbert emphasised that the country’s commitment to Bitcoin remains unchanged.

El Salvador made history in September 2021 by becoming the first nation to adopt Bitcoin as legal tender.

However, surveys indicate that a significant portion of the population remains sceptical about using Bitcoin for transactions; a recent survey revealed that 92% of Salvadorans do not engage in cryptocurrency transactions.

The ongoing support from figures like Tether (CRYPTO:USDT) and Bitfinex highlights El Salvador's ambition to position itself as a leader in cryptocurrency adoption.

Tether has relocated its headquarters to El Salvador, aligning with the country's pro-Bitcoin policies.

At the time of reporting, the Bitcoin (BTC) price was $105,758.