El Salvador has marked the fifth anniversary of its Bitcoin commitment (since its announcement in June 2021), with fresh news revealing the government has downsized the regulatory directive requiring merchants to accept the flagship cryptocurrency as payment.
According to data shared today by market analyst Pamphlets, El Salvador has not only cut its Bitcoin fund by half but also trimmed the mandate requiring businesses to adopt the currency as a mode of payment, due to pressure from the IMF. El Salvador’s recent $1.4 billion bailout by the IMF came with conditions that expected the country to scale back some of its pro-Bitcoin policies.
El Salvador Marks Bitcoin Milestone with Radical Changes
Revelations disclosed today by the analyst show El Salvador’s further agreement with the IMF to limit the use of Bitcoin within its jurisdiction. Under the agreement, the Central American country has eased the legal requirement that merchants accept Bitcoin as payment. Businesses in El Salvador are no longer required to accept the cryptocurrency for payments, under a reform adopted to meet the conditions of the IMF’s international loan; acceptance of the digital currency is now voluntary.
Also, as part of compliance with the conditions, the Central American country has reduced its investment in Bitcoin by 50% to avoid exposing taxpayers’ money to a cryptocurrency whose price is prone to wild volatility. Currently, the El Salvador government holds 7,474 BTC in its Bitcoin fund.
Governments with Top Bitcoin Holdings
El Salvador’s BTC investment highlights government Bitcoin holdings, which have become a massive component of the crypto market. CoinGecko data shows 13 governments jointly hold about $26.8 billion in Bitcoin, making them some of the largest institutions holding the asset.
 
As per CoinGecko metrics, the US government remains the world’s largest BTC holder, currently holding 329,693 BTC worth $20.7 billion. Second is the China government with 190,000 BTC, currently valued at $11.9 billion. The UK government comes third with 61,245 BTC valued at $3.84 billion. The fourth and fifth positions are held by the Bhutan and El Salvador governments, which hold 10,769 BTC and 7,474 BTC, worth $676.14 million and $469.28 million, respectively.
Be the first to comment