El Salvador Adds Bitcoin Collection When BTC Price Drops

President of El Salvador, Nayib Bukele. (Photo; Doc. 360Radio)

JAKARTA - El Salvador has again added 11 Bitcoins to its national reserves with a value of around US$1 million (Rp16.2 billion). This step was taken after the small Central American country received a loan of US$1.4 billion (Rp22.68 trillion) from the International Monetary Fund (IMF). Even though this action was controversial, President Nayib Bukele still adhered to his vision of making Bitcoin an important part of his country's economy.

Since becoming the first country to adopt Bitcoin as legal tender in 2021, El Salvador has continued to raise Bitcoin. To date, the country's total Bitcoin reserves have reached 5,980 BTC.

Bukele often takes advantage of the low price of Bitcoin, especially when the crypto market is sluggish. Based on President Bukele's portfolio tracking data, the unrealized profit from this Bitcoin reserve is estimated at more than 125 million US dollars (Rp 2.02 trillion), or an increase of about 91.54% from the initial purchase price.

However, El Salvador's Bitcoin policy is not always smooth. One of the requirements for an agreement with the IMF is policy reduction related to digital assets, including the potential termination of the use of the Chivo digital wallet introduced by the government. Many people consider this an IMF effort to limit the country's Bitcoin policy.

However,omor Herbert, Director of El Salvador's Bitcoin National Office, emphasized that the government remains committed to making Bitcoin a legal tender and continuing to strategically increase Bitcoin reserves.

This latest move sparked various reactions. Some consider it a high-risk decision that could disrupt the country's economic stability. Eugene Epstein, a financial expert from Moneycorp, even called it a mere marketing tactic. However, El Salvador's purchase of Bitcoin demonstrates the government's strong commitment to this policy.