El Salvador has recently celebrated the fourth anniversary of its historic decision to adopt Bitcoin as legal tender. This milestone was marked by a strategic acquisition of funds, inviting curiosity and dialogue surrounding the nation’s ongoing journey with cryptocurrency.
Latest Bitcoin Acquisition Highlights
As reported by President Nayib Bukele and the Bitcoin Office, the country has added another 21 BTC to its reserves. This act symbolizes the significant total of Bitcoin created, mirroring Bitcoin’s capped limit of 21 million coins.
El Salvador has maintained a routine of purchasing Bitcoin, acquiring approximately one coin each day since March 2024. Current estimates reveal that the nation holds a total of 6,313 BTC.
With current market valuation, these holdings equate to an impressive $700 million. While this might seem modest when viewed in national budget terms, the political implications behind these acquisitions are far-reaching.
Celebrating Bitcoin Day with the purchase of 21 BTC! pic.twitter.com/3X4yKeiqzg
— Nayib Bukele (@nayibbukele) September 7, 2025
Challenges with International Regulations
Recent evaluations indicate that these purchases contradict the terms set by a $1.4 billion IMF loan established late last year. This agreement mandated that public bodies cease voluntary Bitcoin acquisitions and imposed a temporary halt on further purchases under the Extended Fund Facility.
Under the revised Bitcoin Law, the government agreed to make Bitcoin acceptance voluntary for merchants, liquidate the Fidebitcoin trust, and strategically exit the Chivo wallet initiative.
The continuation of Bitcoin purchases raises questions among IMF officials and observers regarding the potential implications for future funding disbursements, with compliance checks scheduled until 2027.
IMF Insights and Transparency Issues
An IMF analysis from March estimated that El Salvador has invested approximately $300 million into Bitcoin since the outset of its digital currency initiative. At present valuations, these investments represent unrealized gains exceeding $400 million.
However, the IMF raised concerns regarding the transparency of these transactions. Limited disclosure complicates independent assessments of the government’s Bitcoin activities, despite the existence of public dashboards.
Considerable criticism has surfaced surrounding the incomplete nature of Bitcoin transaction disclosures, as unrealized gains face potential impacts from market fluctuations.
Security Measures and Public Oversight
Last month, the National Bitcoin Office undertook a major redistribution strategy for its Bitcoin holdings, limiting approximately 500 BTC per address. This measure arose from potential vulnerabilities associated with quantum computing threats.
The new addresses utilized for these redistributions have been publicly shared, aiming for enhanced transparency in the management of Bitcoin assets.
While some industry observers view the transparency efforts positively, others argue that the focus on quantum risks is overly cautious and underline the need for stricter audit protocols.
The Ongoing Debate
As the nation marks four years since legalizing Bitcoin, opinions remain polarized. Advocates herald the initiative as a successful effort to embrace modern financial solutions, whereas critics point out significant challenges related to international finance and regulatory scrutiny.
This anniversary underscores that while El Salvador’s commitment to Bitcoin is seen as audacious, it continues to provoke heated debate within the financial community and beyond.
Featured image from Unsplash, chart from TradingView
