Growing, El Salvador’s Bitcoin Savings Reach IDR 5.2 Trillion

Todaysgist, News – The latest report from Arkham Intelligence, El Salvador’s Bitcoin savings have exceeded USD 340 million or equivalent to IDR 5.2 trillion (assuming an exchange rate of IDR 15,464 per US dollar).

Reported from Yahoo FinanceFriday (8/30/2024), the country has been gradually accumulating new bitcoins at a rate of about one bitcoin a day since March, indicating the country could rake in more than 100 bitcoins by the end of 2024.

El Salvador’s consistent bitcoin accumulation during market turmoil and despite international skepticism may have surprised observers. It has also drawn scrutiny from the International Monetary Fund (IMF), which is currently negotiating with El Salvador on a possible loan program.

Earlier this month, the IMF urged the country to promote transparency around its bitcoin project and highlighted the risks of the cryptocurrency being unstable.

Under President Nayib Bukele, a prominent bitcoin proponent, the country has pursued an aggressive pro-bitcoin program, including a proposal to establish a tax-free “Bitcoin City.”

But two years ago, the IMF declared bitcoin’s legal tender status jeopardized potential IMF loans. The IMF recommended that countries narrow bitcoin’s legal scope by removing bitcoin’s legal tender status.

Despite bitcoin’s legal status in the Central American country, its use is still limited. The Chivo wallet launch in the country has been lacking, and bitcoin adoption rates are still subpar. In addition, bitcoin’s most compelling appeal in El Salvador—money transfers—has yet to deliver convincing results.

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