El Salvador has returned to the bitcoin market. During the recent declines, he added over 1,000 BTC to his reserve. Today it has approximately 7,500 BTC. This means that the country is returning to its “buy the dip” strategy. The president of El Salvador provided proof of this.
El Salvador buys bitcoins
According to the Salvadoran Bitcoin Bureau, El Salvador purchased approximately $100 million of BTC. This happened at a time when the cryptocurrency’s value briefly dropped below $90,000.
However, everything may be surprising, because the previously signed loan agreement with the IMF worth USD 1.4 billion contains a provision according to which El Salvador should not purchase additional bitcoin units. Recently, senior officials claimed that the government has not added any BTC to its reserve since February.
At the same time, the media began to report that El Salvador was buying BTC. A later IMF report indicated that El Salvador did not buy new bitcoins at all, but only made internal BTC transfers – he transferred coins from one address to another. At the same time, El Salvador’s Bitcoin Office continues to say it is purchasing cryptocurrencies. So who to believe?
Cooperation with the USA
The latest update comes as cooperation with the United States on digital assets policy is underway. President Nayib Bukele even met with Bo Hines, executive director of the White House Council of Presidential Advisors on Digital Assets. So has El Salvador received tacit approval for BTC purchases?
In addition to its aggressive BTC accumulation strategy, El Salvador is also taking steps to shape digital asset policy in Latin America. In July, the Central Bank of Bolivia signed a memorandum of understanding with the National Digital Assets Commission of El Salvador to enable the two institutions to exchange technical and regulatory expertise.
El Salvador has already gone down in history as the country that first started adding bitcoins to its reserves. He has been actively buying bitcoins since 2021 (with an alleged break this year). At that time, he recognized BTC as a means of payment.
