El Salvador additional Bitcoin purchase, disregarding IMF agreement

- El Salvador Holds a Total of 6,044 BTC - Continues Bitcoin Purchases Despite IMF Agreement [Unblock Media] The government of El Salvador has proceeded with additional Bitcoin purchases despite agreements with the International Monetary Fund (IMF). Recently, the National Bitcoin Office of El Salvador announced an additional purchase of 12 BTC, bringing the country's total Bitcoin holdings to 6,044 BTC. The government of El Salvador, which signed a $1.4 billion funding agreement with the IMF, had agreed to "reduce Bitcoin activities" at the time of the agreement but has continued its Bitcoin purchases. In response, Stacy Herbert, the director of the National Bitcoin Office, stated that "El Salvador's plans for Bitcoin remain unchanged." There are two main reasons why El Salvador continues to purchase Bitcoin. First, it aims to reduce dependence on international financial institutions like the IMF and strengthen economic independence. Second, President Nayib Bukele's efforts are focused on turning El Salvador into a modern and innovative investment destination through Bitcoin. However, the use of Bitcoin as a payment method within El Salvador is less prevalent than expected. Factors such as the lack of internet and smartphone infrastructure, initial technical glitches in the government-issued Bitcoin wallet 'Chivo,' and Bitcoin's price volatility are cited as reasons. There are also concerns that the low daily income of the population makes it difficult to use Bitcoin. The government continues to make efforts such as expanding technical education programs, enhancing micro-payment infrastructure, and improving the Chivo wallet, but there is skepticism about whether these policies will provide substantial economic benefits to the population. Other countries, such as Bhutan, are also engaging in Bitcoin mining and accumulation. Bhutan is conducting Bitcoin mining operations utilizing its abundant hydropower resources and holds cryptocurrency worth approximately $780 million. The accumulation of Bitcoin by various countries is interpreted as an expectation to establish their own financial ecosystems and attract foreign investments. Bitcoin reached a record high on January 20, surpassing $109,000 per coin. If the demand for Bitcoin from countries like El Salvador and Bhutan continues, it could exert upward pressure on its price. However, considering warnings from international organizations and potential regulatory crackdowns, its volatility might also increase. El Salvador's Bitcoin purchases emphasize the country's financial independence and its role as a blockchain hub, but they face challenges like low Bitcoin usage and strained relations with international financial institutions. The Bitcoin accumulation movements by countries like Bhutan could bring changes to the cryptocurrency ecosystem, sparking more active global regulatory and policy discussions.