JAKARTA - The country that adopts Bitcoin as legal payments, El Salvador insists that it will not sell Bitcoin. The country led by Nayib Bukel sees crypto as an integral part of the future economy. Despite criticism from international institutions, this small Latin American country is slowly starting to reduce its dependence on traditional financial systems.
Since getting an injection of funds from the world financial institution, namely the International Monetary Fund (IMF) amounting to US$1.4 billion (Rp22.68 trillion) on December 18, 2024, El Salvador strengthened its crypto investment strategy. The disbursement of the funds is not unconditional, the IMF asks El Salvador to limit bitcoin transactions and reduce government policies related to BTC.
On December 19, 2024, the country again shocked the public by buying 11 BTC worth more than USD 1 million (around IDR 16.2 billion). Despite being pressured by the IMF, El Salvador actually affirmed its commitment to Bitcoin (BTC). In fact, the Christmas atmosphere in the country is decorated with Bitcoin-themed trees, a unique symbol of their dedication to crypto.
VOIR éGALEMENT:
El Salvador became the first country to recognize Bitcoin as legal tender in September 2021. The decision received praise from pro-crypto parties and criticism from anti-cripto, especially from international financial institutions such as the IMF.
As part of a new loan deal, the IMF puts forward a number of strict conditions, including banning crypto transactions, lifting the company's obligation to accept payments in BTC, as well as banning the use of government-backed Chivo crypto wallets. This is considered an effort to restore state financial stability through a more traditional monetary approach.
Despite the pressure, El Salvador remains steadfast in their Bitcoin strategy. The country's Bitcoin National Office announced that it would not sell its BTC reserves. Until now, El Salvador owns 5,995 BTC, worth about 569.5 million US dollars (Rp9.22 trillion). Their average BTC purchase price is estimated at around 97,000 US dollars (Rp1.57 billion) per coin.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
