Key Takeaways
- El Salvador's Bitcoin holdings have surpassed 6,000 BTC.
- Bitcoin accounts for a 127% gain in the country's reserves.
- The government is replacing its Chivo wallet with private options.
El Salvador has reached a milestone in its Bitcoin strategy, with its holdings surpassing 6,000 BTC as of December 29, 2024.
Valued at $569 million, these reserves mark a significant gain of 127% since the country began accumulating Bitcoin in September 2021 at an average price of $45,450 per coin.
President Nayib Bukele remains committed to the strategy, stating:
Our country’s Bitcoin reserves are now worth 127% more than we paid for them — an increase of more than $344 million.
Daily Bitcoin purchases
El Salvador has been purchasing Bitcoin daily, with notable transactions such as an 11 BTC acquisition earlier in December.
This purchasing spree follows a $1.4 billion loan secured from the International Monetary Fund (IMF).
However, the IMF has urged El Salvador to slow its Bitcoin-related initiatives due to potential risks for a developing economy.
Shifts in Bitcoin infrastructure
The government plans to phase out the official Chivo wallet, initially designed for Bitcoin transactions, in favor of private sector wallets to encourage competition and innovation.
Despite challenges, the National Bitcoin Office asserts that Bitcoin remains central to El Salvador’s financial strategy, emphasizing its role in financial inclusion.
