El Salvador Buys $2.3M in Bitcoin to Celebrate Bitcoin Law Milestone
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El Salvador purchased 21 Bitcoin on September 7 to mark “Bitcoin Day,” the anniversary of its landmark Bitcoin Law of 2021. President Nayib Bukele announced the $2.3 million acquisition, which raised the country’s total holdings to about 6,313 BTC, valued at nearly $701.8 million.
https://twitter.com/nayibbukele/status/1964774115405070742
$1.4B IMF Deal at Odds With El Salvador’s Bitcoin Adoption Push
El Salvador’s Bitcoin Office said the country added 28 BTC in the past week and more than 50 BTC in the last month. Blockchain records show the government has been buying about one coin a day since March 2024.
The plan follows President Bukele’s Bitcoin Law, which made El Salvador the first nation to use Bitcoin as legal tender alongside the U.S. dollar.
Supporters praised the bold move, but global financial institutions flagged potential risks. Concerns have grown sharper since El Salvador signed a $1.4 billion agreement with the IMF in December 2024.
The deal requires public entities to halt voluntary Bitcoin purchases, making IMF disbursements conditional on compliance.
Officials said El Salvador had agreed to freeze new acquisitions under the Extended Fund Facility, which runs through 2027.
The government later changed the Bitcoin Law so that businesses could choose whether to accept Bitcoin, though it remained legal tender. Even so, Bukele has kept buying more, raising questions about whether El Salvador is avoiding its promises.
In July, the IMF stated that El Salvador remained in compliance, saying the government was shifting funds between internal wallets rather than making fresh purchases.
Yet blockchain data and recent announcements paint a different picture, raising questions about whether officials are respecting the spirit of the agreement.
International observers, including journalists following the IMF talks, are watching closely. Some analysts see the continued purchases as a sign of national-level crypto commitment that could influence wider financial policy.
Could the US Follow El Salvador’s Path on Bitcoin?
El Salvador’s Bitcoin experiment remains controversial, but the numbers are striking. On the 13th of August, Bukele reported that national holdings had grown to $768.85 million, a 155.82 percent increase from the initial $300.5 million investment.
Gains like these strengthen the government’s argument that the Bitcoin Law has delivered economic upside despite global criticism.
https://twitter.com/nayibbukele/status/1955725065091170500
The United States has shown little interest in following that path. A day after Bukele’s disclosure, Treasury Secretary Scott Bessent outlined Washington’s strategy for Bitcoin reserves.
He said the U.S. will expand its Bitcoin reserve through budget-neutral methods, relying on assets seized in criminal investigations rather than direct government purchases.
Bessent emphasized that the approach follows President Trump’s March order, which put U.S. leadership in cryptocurrency as a priority.
Senator Cynthia Lummis welcomed the update, saying she has long backed the idea of a national Bitcoin reserve. But she admitted there are limits, noting that the country’s $37 trillion debt cannot be fixed with Bitcoin alone.
https://twitter.com/SenLummis/status/1956095326210941204
Instead, Lummis proposed revaluing U.S. gold reserves at today’s higher prices and transferring the gains into the Bitcoin reserve. That idea reflects growing interest in strategic reserve innovations that could strengthen fiscal stability without worsening debt.
Each side of the debate, from Washington to San Salvador, reflects the growing tension between Bitcoin’s potential rewards and the financial rules that attempt to contain it.
