- El Salvador holds 6,077 BTC, acquired through daily and bulk purchases, with unrealized gains in excess of $350 million.
- The policy revisions, including the relaxation of trade mandates, are aimed at securing a $1.4 billion loan from the IMF while maintaining Bitcoin adoption targets.
MicroStrategy CEO Michael Saylor met with El Salvador’s President Nayib Bukele to assess the country’s Bitcoin adoption policies.
The discussion focused on optimizing El Salvador legal tender framework, which has maintained Bitcoin as a state-recognized currency since September 2021.
Saylor’s public comments highlighted potential applications of Bitcoin’s proof-of-work protocol for public infrastructure, although no specific plans were revealed.
Yesterday, @NayibBukele and I had a great discussion about the opportunities for El Salvador🇸🇻 to benefit from and accelerate global Bitcoin adoption. pic.twitter.com/BerAmVWGdn
— Michael Saylor⚡️ (@saylor) February 14, 2025
El Salvador currently holds 6,077 BTC, acquired through daily purchases since November 2022 and periodic bulk purchases. The treasury’s accumulation strategy aligns with its Bitcoin bond initiative, which aims to fund infrastructure projects such as the proposed “Bitcoin City” with geothermal energy.”
The volcanic bond issuance, initially planned for 2022, remains delayed pending regulatory approvals and market conditions.
To secure a $1.4 billion loan from the IMF, El Salvador revised its policies on Bitcoin. Changes include exempting businesses from mandatory BTC acceptance and limiting government-run cryptocurrency transactions.
These adjustments address IMF concerns about fiscal liquidity risks while preserving core components of the legal tender law. Critics argue that the compromises dilute Bitcoin’s role as a transactional currency, but remittance data suggest sustained utility.
Bitcoin now facilitates 4% of El Salvador’s annual remittance inflows of $7 billion, reducing transfer fees by an estimated $400 million from 2021. However, the cryptocurrency makes up less than 1% of daily consumer transactions, according to central bank reports.
Proponents emphasize the long-term benefits of hodling, noting that the treasury’s unrealized gains exceed $350 million based on current BTC prices.
While the Bukele administration balances IMF requirements with crypto ambitions, the viability of Bitcoin adoption at the state level hinges on measurable economic outcomes, from bond launches to energy infrastructure development.
For now, El Salvador’s mix of regulatory pragmatism and ideological commitment keeps its crypto experiment alive, though its legacy as a financial model remains unproven.
