El Salvador Dials Back on Pro-Bitcoin Policies Amid IMF Pressure
El Salvador has marked five years since it first announced its commitment to using Bitcoin. However, the country's latest move on this front is a departure from its earlier stance. According to data from market analyst Pamphlets, El Salvador has scaled back some of its pro-Bitcoin policies.
The country has cut its investment in Bitcoin by half and eased the legal requirement that merchants accept it as payment. Businesses are no longer required to accept Bitcoin; instead, they can do so voluntarily. This change is part of El Salvador's agreement with the International Monetary Fund (IMF) to meet certain conditions for a $1.4 billion bailout.
El Salvador currently holds 7,474 BTC in its fund. The country's decision highlights government holdings in Bitcoin, which have become significant in the crypto market. CoinGecko data shows that governments jointly hold around $26.8 billion in Bitcoin, with the US government being the largest holder at 329,693 BTC worth $20.7 billion.
Other notable government holders include China (190,000 BTC, $11.9 billion), the UK (61,245 BTC, $3.84 billion), Bhutan (10,769 BTC, $676.14 million), and El Salvador itself (7,474 BTC, $469.28 million).