Nayib Bukele, president of El Salvador, made a publication on his personal X account to confirm that his government continues with the strategy of daily Bitcoin (BTC) purchases.
The post is given after the criticism that Bukele received for the agreement that closed El Salvador with the International Monetary Fund (IMF) to receive a loan of USD 1.4 billion under the Extended Facility of the Fund (ESAF).
As CriptoNoticias has reported, the Salvadoran government accepted the conditions imposed by the IMF, such as eliminating the obligation for local companies to accept bitcoin as a means of paymentmaking its use voluntary.
For several members of the community, the agreement means the beginning of the end of El Salvador’s bitcoin model, but President Bukele came out to respond to criticism with a x postin which confirms that his government continues with its purchasing strategy of the most valuable digital asset on the market. In addition, it challenges the IMF, which is pressing for BTC to stop being legal tender in that country.
According to explorer data Bitcoin TreasuriesEl Salvador purchased 11 BTC valued at over $1 million yesterday, December 21. In this way, it accumulates 5,994 BTC, equivalent to a figure greater than 580 million dollars.
Along those same lines, Stacy Herbert, director of the National Bitcoin Office of the Central American country, Indian that although modifications will be made to article 7 of the Bitcoin Law, approved in 2021, the digital currency will continue to be legal tender in El Salvador.
Likewise, Herbert emphasized that the Central American country will maintain its BTC purchase policy and, in addition, plans to accelerate the pace of these acquisitions to increase its treasure based on coin created by Satoshi Nakamoto.
The purchasing strategy you implement He Salvador is known as DCA (Dollar Cost Averaging). It consists of establishing a plan for periodic purchases of an asset, allocating a fixed amount for a certain time, regardless of the price.
In this way, by averaging, the investor reduces the impact of price fluctuations.
Herbert also announced that, as part of the agreement, the wallet created by the government, Chivo Walletwill be discontinued. “The Chivo wallet will be sold or discontinued, but the numerous private sector bitcoin wallets will continue to serve El Salvador,” he highlighted.
Finally, it is important to note that taxes will only be paid in dollars and not in BTC. “Transparency, regulation and supervision of digital assets will be improved to safeguard financial stability, consumer and investor protection and financial integrity,” the agreement explains.
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