El Salvador Buys Gold, Expands Reserves While Adjusting Bitcoin Policy
- El Salvador Buys Gold After Bitcoin Pause
- The country's reserves now include more than 58 ounces
- IMF pushes for cryptocurrency policy changes
The Central Reserve Bank of El Salvador announced the acquisition of 13.999 troy ounces of gold, valued at US$207,4 million. This is the first purchase of precious metals since 1990 and comes at a time of official pause in the Bitcoin accumulation strategy. With the transaction, gold reserves increased from 44.106 to 58.105 ounces, in line with International Monetary Fund guidelines.
The IMF confirmed in February 2025 that El Salvador had halted state Bitcoin purchases, suspending the daily purchase program promoted by President Nayib Bukele. In its July review, the fund highlighted that the on-chain movements associated with the government were related to internal wallet transfers, not new purchases.
The decision to invest in gold was presented as part of a medium- and long-term strategy to diversify international reserves. The metal represents about 20% of central banks' global assets, second only to dollar-denominated reserves. According to recent data, central banks have been acquiring more than 1.000 tons of gold per year for the past three years.
Despite the pause, El Salvador holds approximately 6.244 BTC, valued at US$742 million, with cumulative gains of 127% over the average purchase price of US$46. However, legislative changes approved in early 2025 eliminated the mandatory use of Bitcoin in commerce, a decision welcomed by the IMF as part of the US$1,4 billion loan agreement.
Another important measure was the division of the Bitcoin treasury into 14 distinct addresses, a way to increase security against potential advances in quantum computing. Experts warn that techniques like Shor's algorithm could compromise the encryption used in public keys if quantum processors advance faster than expected.
Meanwhile, the country's National Commission for Digital Assets is working on initiatives to tokenize real estate and other assets, with pilot projects in partnership with US regulators. These sandbox programs aim to provide practical data for future regulations on token custody and classification, solidifying El Salvador's position as a laboratory for cryptocurrency policies.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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