El Salvador passes Bitcoin-limiting bill — Bukele buys more anyway

El Salvador has continued adding Bitcoin to its reserves despite agreeing to scale back its crypto ambitions under a recent $1.4 billion loan deal with the International Monetary Fund.

Since the start of 2025, the country has purchased 52 Bitcoin, bringing its total holdings to over 6,055 Bitcoin — valued at nearly $600 million at current prices.

While the government typically buys one Bitcoin per day, it acquired two on February 1.

The IMF agreement, signed in December, required El Salvador to make Bitcoin acceptance voluntary for businesses, confine public sector involvement in crypto-related activities, and ensure taxes are paid exclusively in US dollars.

The government also committed to gradually reducing its role in the Chivo Wallet, a state-backed crypto payment app launched in 2021 to encourage Bitcoin use.

Lawmakers and President Nayib Bukele passed legal amendments last week to comply with these conditions.

Bukele has long framed Bitcoin as a tool for financial inclusion, arguing it could benefit the 70% of Salvadorans without access to traditional banking services.

Businesses were previously required to accept the cryptocurrency, a policy that met resistance from retailers wary of volatility.

Despite IMF pressure to limit Bitcoin’s role, the government has signaled it will continue accumulating Bitcoin.

Bukele’s administration has been buying Bitcoin daily since late 2022, using a dollar-cost averaging strategy.

Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.