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El Salvador Just Found A Way To Keep Their Bitcoin And The IMF Happy

The Block Whisperer

January 31, 2025 at 10:52 PMby The Block Whisperer

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El Salvador secures $1.4B from the IMF while keeping Bitcoin legal tender, inspiring global adoption. U.S. states & institutions are now racing to stack BTC.

El Salvador Just Found A Way To Keep Their Bitcoin And The IMF Happy
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Looks like El Salvador just pulled off the impossible – they're keeping Bitcoin as legal tender while getting the IMF to stop giving them the side-eye. 

They’re able to keep their image as the Bitcoin paradise while also no breaching any terms with one of the largest lenders in the world – well done. 

Here's how they managed this 4D chess move.

The Art of the Deal

El Salvador just tweaked their Bitcoin law to land a sweet $1.4 billion from the IMF. 

But put down the pitchforks – they’re not giving up on Bitcoin in the slightest and made sure to navigate these choppy waters with grace and strategy.

Rather than making it mandatory for folks to accept Bitcoin for payments, if the payee requests, they’re making it optional. 

Businesses now have the right to choose whether or not they accept Bitcoin, and given the overall lack of adoption on the ground, that kind of works out for most people.

Overall, the government is stepping back from some of its more aggressive crypto moves, making this more of a tactical adjustment rather than a surrender.

Best of Both Worlds

While they're playing nice with the IMF, El Salvador is still stacking sats like there's no tomorrow. 

They just added another 12 BTC to their stack, bringing their total to 6,049 BTC – not bad for a country of only 6 million people.

At today’s prices that's about $633 million worth of Bitcoin, and they're up 127% on their investment. 

Again, not bad for a country that everyone said was going to bankrupt itself by buying Bitcoin.

Turns out the opposite was true – who would have guessed? 

Everyone Wants In On The Action

The funny thing is that while the IMF was busy forcing El Salvador to tone down its Bitcoin enthusiasm, the rest of the world started to take a leaf out of the Central American country’s book.

The Czech National Bank is talking about potentially putting 5% of its €140 billion reserves into Bitcoin. 

That may not be the trillions that the United States can issue with a stroke of a pen, but that’s the sort of slow and steady adoption that primes the engine for long-term success.

And speaking of the US, states are now falling over themselves to get into Bitcoin. 

Illinois wants a 5-year strategic Bitcoin reserve, while Texas, North Dakota, and New Hampshire are all jumping on the bandwagon as well.

We’re seeing at least 13 states are working on "Strategic Bitcoin Reserve" legislation, so the genie seems to be officially out of the bottle. 

In hindsight, it seems El Salvador might have started something bigger than anyone expected.

The White House Is Watching

Even Trump's getting in on the action. 

David Sacks, who's running point on crypto policy at the White House, confirmed they're looking into a national Bitcoin reserve.

No timeline yet, but when the US government starts talking about holding Bitcoin, you know the game has officially changed.

The institutional money is flooding in, with US firms hoarding Bitcoin like it's going out of style. 

The ratio of US to non-US Bitcoin holdings jumped from 1.24 to 1.65 in just a few months.

MicroStrategy is planning to raise $42 billion (yes, billion with a B) over the next three years to buy more Bitcoin. 

And some folks at HashKey Group think we could see $300,000 in Bitcoin in 2025.

That’s… insanely bullish over the long term. 

El Salvador Saved The Day

El Salvador just showed everyone how to dance with the IMF while keeping their Bitcoin bags. 

They're playing by the rules while continuing to stack sats.

And while everyone was focused on El Salvador "scaling back," the rest of the world started following their lead. 

Sometimes you have to take one step back to take two steps forward.

#reserve
#bitcoin
#elsalvador

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