Key takeout
- El Salvador bought 5 Bitcoin to $83,000 during the price decline, increasing its total holding to 6,100 BTC.
- The purchase follows the IMF's $1.4 billion loan to El Salvador, and calls for a reduction in government involvement in Bitcoin.
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According to data from Arkham Intelligence, as major digital assets fell sharply to $83,000, El Salvador acquired around $415,000 worth of five Bitcoins on Monday Night ET.
Central America's Bitcoin Holdings currently totals 6,100 Bitcoins, with a current value of around $510 million. El Salvador has maintained a strategy to buy one bitcoin every day since November 2022.
The purchase was the recent $1.4 billion loan approval from the International Monetary Fund on February 27, which included conditions requiring states to reduce their involvement in crypto activities, including government Bitcoin purchases and transactions.
El Salvador has made adjustments to comply with IMF requirements by voluntarily accepting Bitcoin and reducing involvement in Bitcoin-related initiatives.
The IMF arrangement focuses on improving fiscal and governance while managing risks related to El Salvador's Bitcoin program.
Bitcoin traded at around $83,700 at press, showing an 8% decline over the past 24 hours, according to Coingecko data.
El Salvador President Naive Bukere has also focused on advances in artificial intelligence and technological advances apart from Bitcoin.
President Bukere recently met with A16Z co-founders Ben Horowitz and Mark Andreessen to discuss investment opportunities in technology and AI.
The discussion focused on establishing El Salvador as a local high-tech hub, leveraging policy changes such as the 0% tax rate for the high-tech industry, and creating a supportive regulatory framework for AI. They also looked at ways in which technological advancements and regional investments transform El Salvador into a key destination for technology innovators.
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