The name of El Salvador is the first thing that springs to mind when discussing Bitcoin. a nation that has drawn international notice by granting digital currency legal status. However, the topic of why El Salvador keeps acquiring bitcoin has been on people’s minds for a while. Is this a covert government tactic, or are there other factors at play?
The truth was exposed by the IMF study
According to this story, the government is consolidating its existing bitcoin holdings in several official wallets rather than making any fresh purchases at this time. The IMF further explained that no new bitcoin-based debt or tokens that can result in government liability are being taken out by the government.
Verification of the long-standing suspicion
The idea that the government is likely using the word “buy” merely for publicity was first proposed by Forbes journalist Javier Bastardo, but nothing of the sort is taking place. His argument has now been reinforced by the IMF study as well.
President Nayib Bukele also tweeted in March, stating unequivocally that the nation would never stop purchasing bitcoin. He stated: “When the whole world isolated us, we did not stop even then, so why would we stop now?”
Real purchase or just publicity
It is clear from this entire incident that the government’s strategy is largely symbolic. It is not just an investment in a digital asset, but an attempt to challenge the global financial system. The Chivo wallet’s activities and the IMF’s comments help us understand that El Salvador’s goal is not just to make a profit, but to pave the way to a new financial freedom.
Disclaimer: This article is written for information sharing purposes only. Do not take any of the information given in it as investment or financial advice. The cryptocurrency market is volatile and involves risk. Consult your financial advisor before making any investment.
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