El Salvador bought 21 BTC on Sept. 7 to mark the fourth anniversary of its 2021 Bitcoin Law. The purchase brings the government’s reserve to 6,313.18 BTC, roughly $701 million at current prices.
The buy continues a long-running accumulation strategy — El Salvador has been acquiring about 1 BTC per day since March last year — and serves as a symbolic nod to Bitcoin’s 21 million supply cap.
That symbolism sits alongside a more complicated fiscal picture. El Salvador agreed a $1.4 billion IMF loan in December that, once finalized, included a commitment to halt voluntary Bitcoin purchases by public entities. The IMF also pushed changes including making merchant acceptance voluntary, winding down the Fidebitcoin trust and exiting the Chivo wallet program.
Despite those conditions, the government has continued buying Bitcoin. In a recent operational change, the National Bitcoin Office redistributed holdings across multiple addresses — capping about 500 BTC per address — citing quantum computing concerns and publishing a public dashboard for transparency.
In March the IMF estimated El Salvador’s BTC buys at about $300 million, with more than $400 million in unrealized gains at current prices, while noting limited disclosure limits independent verification. Continued purchases and legal tweaks leave future IMF disbursements tied to compliance reviews through 2027.
Why it matters: The purchases reinforce El Salvador’s role among sovereign holders, but they also raise questions about macroeconomic risk, transparency and adherence to international loan conditions — risks investors and citizens should watch closely.
Source: Decrypt. Read the original coverage for full details.