On June 19, 2025, El Salvador once again increased its strategic Bitcoin reserves, as reported by Bitcoin Magazine through a post on X. In the latest update, the country purchased 1,000,0000 BTC at 02:49:51 WIB, with a value at that time of 3,864.86 BTC, raising total holdings to 6,213,18403057 BTC. This move is marked by a gradual increase in El Salvador's Bitcoin reserves, demonstrating a continued commitment to the crypto adoption vision pioneered by President Nayib Bukele since 2021, when El Salvador became the first country to recognize Bitcoin as legal tender.
Since the initiative, El Salvador has spent around $150 million to purchase Bitcoin up to mid-2022, which now contributes 4% of its national reserves. However, this strategy faces challenges, including a 70% decline in value from November 2021 to June 2022. This latest purchase occurred amidst global geopolitical tensions, such as the Israel-Iran conflict, which could affect Bitcoin price stability and El Salvador's reserve strategy moving forward.
This step also reflects resistance to international pressure, particularly from the International Monetary Fund (IMF). In December 2024, El Salvador agreed to a $1.4 billion loan from the IMF with the condition of reducing Bitcoin policies, including making Bitcoin acceptance in the private sector voluntary. Nevertheless, the government continues its purchases, demonstrating confidence in the long-term potential of this digital asset. A 2021 poll by the Central American University showed that 68% of Salvadorans disagreed with the adoption of Bitcoin due to a lack of understanding, reflecting ongoing domestic challenges.
El Salvador's Bitcoin purchases continue to be a global focal point, inspiring the crypto community while also triggering skepticism. With increasing reserves, the country has the potential to become a pioneer in the use of Bitcoin as a strategic reserve, although market volatility and regulatory pressures remain key factors to consider.
Impact: This decision could strengthen El Salvador's position as a pioneer in Bitcoin adoption, but it also increases financial risks due to price fluctuations and geopolitical uncertainty.