El Salvador marked the fourth anniversary of its Bitcoin law with a fresh BTC purchase and a national celebration, despite IMF loan restrictions.
Key Takeaways
- El Salvador bought 21 BTC on Bitcoin Day, bringing its total holdings to 6,313 BTC worth over $700 million.
- This purchase contradicts a $1.4 billion IMF agreement, which required halting voluntary public BTC acquisitions.
- President Bukele reaffirmed his Bitcoin strategy, saying the country will not stop accumulating BTC.
- Despite mixed outcomes, El Salvador continues its crypto experiment, offering Bitcoin education and updating laws to attract sophisticated investors.
What Happened?
El Salvador celebrated the fourth anniversary of its Bitcoin legal tender law on Sunday with a new purchase of 21 BTC, worth around $2.3 million. This move brings the country’s total Bitcoin holdings to 6,313 BTC, valued at over $701 million, according to the National Bitcoin Office. President Nayib Bukele announced the acquisition on X, linking the symbolic number to Bitcoin’s capped 21 million supply.
🥳EL SALVADOR CELEBRATES BITCOIN DAY!
— The Bitcoin Office (@bitcoinofficesv) September 7, 2025
The Bitcoin Office is proud to have been building BITCOIN COUNTRY for three of the four years since El Salvador made bitcoin legal tender.
🇸🇻 Guided by EXCELLENCE ONLY, our results prove that builders can just build extraordinary things:… pic.twitter.com/BReo1zC2pZ
El Salvador Doubles Down on Bitcoin Strategy
In a move that caught the attention of the global crypto community, President Nayib Bukele confirmed the 21 BTC purchase as part of the country’s ongoing Bitcoin reserve strategy. This came even as El Salvador is bound by a $1.4 billion IMF loan agreement that requires a freeze on public sector Bitcoin acquisitions.
Bukele stated on X, “Buying 21 bitcoin for Bitcoin Day,” celebrating the fourth year since El Salvador became the first country in the world to make Bitcoin legal tender.
Buying 21 bitcoin for Bitcoin Day. pic.twitter.com/3X4yKeiqzg
— Nayib Bukele (@nayibbukele) September 7, 2025
Despite the IMF requirement, on-chain data shows the country has been buying roughly 1 BTC per day since March 2024, and added over 50 BTC in the past 30 days alone.
Clashing with the IMF
The International Monetary Fund (IMF) has made it clear that El Salvador agreed to halt voluntary Bitcoin acquisitions as part of the loan deal finalized in December 2024. A July IMF report reiterated that the government had not purchased any new Bitcoin since February, citing signed statements from the Central Bank President Douglas Pablo Rodríguez Fuentes and Finance Minister Jerson Rogelio Posada Molina.
However, Bukele’s social media posts and data from the Bitcoin Office contradict these claims, suggesting that BTC buys have quietly continued.
Bitcoin Reserve Security Upgrades
In August, El Salvador redistributed its Bitcoin holdings across 14 wallets, each holding no more than 500 BTC, to reduce risks from potential quantum computing attacks. The move aims to limit exposure from a single compromised wallet and is seen as a precaution as quantum threats to cryptographic systems loom on the horizon.
The Bitcoin Office stated that public transparency in Bitcoin transactions increases vulnerability and that splitting reserves enhances national security.
Bitcoin Education and New Legal Framework
Despite scaling back some of its initial Bitcoin policies to align with IMF terms, the country continues to expand its Bitcoin-related infrastructure:
- 80,000 public servants have now received Bitcoin certification.
- The government launched Bitcoin and AI-focused education programs.
- A recent banking law allows licensed financial institutions to offer BTC-based services to qualified investors.
Mixed Reactions from Critics and Advocates
Some industry voices, like Blockchain.com’s Nicolas Cary, have criticized El Salvador’s top-down approach to Bitcoin adoption. Speaking at Token 2049, Cary argued that the lack of grassroots involvement undermines the decentralized ethos of cryptocurrency.
NGOs and local critics also contend that Bitcoin policies benefit the government more than ordinary citizens, calling for better education and practical tools to help everyday Salvadorans engage with the crypto economy.
CoinLaw’s Takeaway
I’ve been watching El Salvador’s Bitcoin journey since day one, and this latest move really highlights the tension between idealism and pragmatism. On one hand, you have a small country making bold moves and embracing innovation. On the other, it’s hard to ignore the contradiction between IMF obligations and continued BTC purchases.
In my experience, governments rarely play with fire unless they believe the upside is worth the risk. Whether this will pay off for El Salvador remains to be seen, but they’ve made one thing clear: they are not backing down from their crypto vision.
