El Salvador again purchased 11 Bitcoins on 4 February to strengthen the strategic BTC reserve of the country. The country followed a strategy in which one Bitcoin was bought daily, but has recently increased the pace of the purchases.
According to the Bitcoin tracker of President Nayib Bukele, El Salvador now owns 6,067.18 bitcoins, with a current value of $ 616,049,642. In the last seven days, the country has bought more than 20 bitcoins.
IMF deal: BTC no longer mandatory payment method
El Salvador has concluded an agreement with the International Monetary Fund (IMF) to no longer recognize Bitcoin as a legal tender. This step is part of a $ 1.4 billion deal and has led to mixed reactions among crypto lovers, who fear that it can hinder the growth of the country as a crypto hub.
The new law states that Bitcoin no longer has an official payment status. This means that BTC can no longer be used for paying taxes. However, traders may still accept the crypto currency, as long as they and their customers agree. BTC payments therefore remain voluntary and not mandatory. In addition, public involvement in the Bitcoin sector is limited and the Chivo wallet is given a private character.
Although analysts had predicted that the IMF deal would slow down the crypto activities of El Salvador, that does not seem to happen. The country will continue to expand its national Bitcoin reserves. Only one day after signing the agreement, El Salvador bought 11 BTC, worth more than $ 1 million.
Despite the reforms that Bitcoin’s legal status have changed, El Salvador is sticking to his strategy to let the digital currency play an important role in his financial future.
Divided opinions about Bitcoin reserves
The Bitcoin project of El Salvador continues to provide internationally. Financial institutions and economic experts praise the country for its progressive strategy to position itself as a bitcoin-hub. However, many other experts warn of the risks of market fluctuations and possible regulation problems.
The IMF and other organizations are concerned about the influence of Bitcoin on the financial stability of the country. Nevertheless, the recent purchases show that El Salvador is sticking to his conviction that the benefits of crypto-adoption outweigh the risks. President Bukele believes that Bitcoin can contribute to economic diversification and financial inclusion.
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Source: https://newsbit.nl/el-salvador-koopt-11-extra-bitcoins-en-verhoogt-reserves-tot-6-067-btc/
