El Salvador Increases Bitcoin Ownership, Total Has 6,102 Coins

The government of El Salvador has again increased Bitcoin ownership (photo: x @cryptothedoggy)

JAKARTA The government of El Salvador has again increased Bitcoin ownership in its strategic reserves. In an announcement made via social media by the National Bitcoin Office, this latest purchase saw the country's total Bitcoin holdings surpass 6,102 coins.

The move comes just days after the International Monetary Fund Council (IMF) approved a 40-month aid program worth US$1.4 billion (IDR 22.8 trillion) for El Salvador.

The agreement with the IMF includes a change in Bitcoin status in the Central American country, where the cryptocurrency cannot be used to pay taxes and its use among the public is voluntary. In fact, when given the status as legal tender in 2021, Bitcoin is expected to be widely adopted.

Despite continuing to increase Bitcoin reserves, the government of El Salvador emphasized to the IMF that the purchase did not violate the agreement that had been made. The IMF states that the government has committed not to increasing Bitcoin ownership "at the overall public sector level."

"We have consulted with authorities in El Salvador, and they ensure that the increase in Bitcoin ownership in the Strategic Bitcoin Reserve Fund is in accordance with the terms of the program that has been agreed upon," an IMF spokesman said.

However, the IMF did not provide further explanation of how the purchase of Bitcoin by the National Bitcoin Office was not considered an increase in the government's exposure to crypto assets. Meanwhile, the El Salvadoran Presidential Palace has yet to comment on requests for clarification regarding this matter.

In the financial market, El Salvador's dollar bonds experienced a decline in prices on Wednesday, March 5, with bonds due in 2050 and 2041 down 0.75 cents per dollar.

Since the IMF approved last week's aid program, El Salvador has purchased 12 additional Bitcoins. Currently, the country's government has Bitcoin with a value of nearly $550 million, based on data submitted by the government.