El Salvador has officially surpassed the milestone of holding over 6,000 Bitcoin (BTC), reinforcing its pioneering stance in adopting cryptocurrency as a national reserve asset. Under the leadership of President Nayib Bukele, the country now possesses 6,000.77 BTC. As of late December 2024, the total value of these holdings is approximately $569.3 million.
Expanding the National Bitcoin Portfolio
According to the National Bitcoin Office of El Salvador, the government recently acquired an additional Bitcoin, bringing its total to 6,000.77 BTC. The average purchase price per Bitcoin stands at $45,450, reflecting an unrealized gain of over 108% at current valuation levels.
El Salvador made its first Bitcoin acquisition on September 6, 2021, shortly before becoming the first sovereign nation to grant Bitcoin legal tender status.
How El Salvador Ranks Among Global Bitcoin Holders
Based on data from public treasury trackers, El Salvador currently ranks as the sixth-largest national holder of Bitcoin. It trails behind the United States, China, the United Kingdom, Ukraine, and Bhutan in terms of total BTC reserves.
Although the country has maintained a strategy of purchasing one Bitcoin per day, it has also executed larger acquisitions. Notably, on December 22, the government bought $1 million worth of Bitcoin despite the International Monetary Fund (IMF) advising against further cryptocurrency initiatives.
Strategic Outlook and Economic Considerations
Stacy Herbert, Director of the National Bitcoin Office, has indicated that the country may increase both the frequency and volume of its Bitcoin acquisitions moving forward. A representative from the office reaffirmed that retaining Bitcoin as a long-term strategic asset remains a core policy, with no plans to divest any holdings.
At the same time, the state-sponsored Chivo wallet may be phased out or sold. Herbert suggested that private-sector Bitcoin wallets are expected to better serve the population’s transactional needs.
The IMF has yet to finalize its $1.4 billion financial agreement with El Salvador, and negotiations remain ongoing. The institution has repeatedly expressed concerns over macroeconomic risks stemming from the country’s Bitcoin policies.
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Frequently Asked Questions
How many Bitcoins does El Salvador own?
As of December 2024, El Salvador holds 6,000.77 BTC. The government continues to acquire more Bitcoin through daily purchases and occasional bulk buys.
Why is El Salvador buying Bitcoin?
The country adopted Bitcoin as legal tender in 2021 and considers it a strategic reserve asset. The government believes it enhances financial inclusion, attracts investment, and serves as a hedge against inflation.
What is the current value of El Salvador’s Bitcoin holdings?
The holdings are valued at approximately $569 million based on late-2024 market prices. The average purchase price was $45,450 per Bitcoin, meaning the portfolio has significantly appreciated.
Which countries hold the most Bitcoin?
The largest national holders of Bitcoin include the United States, China, the United Kingdom, Ukraine, and Bhutan. El Salvador ranks sixth among sovereign states.
Has the IMF approved of El Salvador’s Bitcoin strategy?
No. The IMF has consistently urged El Salvador to reverse its Bitcoin legal tender law and limit its cryptocurrency exposure due to concerns over financial stability and public debt.
What will happen to the Chivo wallet?
The government may sell or discontinue the state-operated Chivo wallet. Officials expect private wallet providers to offer more efficient and user-friendly solutions for daily transactions.