El Salvador has marked the fifth anniversary of its Bitcoin commitment, with the government downsizing its regulatory directive requiring merchants to accept Bitcoin as payment. The country has cut its Bitcoin fund by half, now holding 7,474 BTC, due to pressure from the IMF.
According to market analyst Pamphlets, El Salvador has agreed with the IMF to limit the use of Bitcoin within its jurisdiction, easing the legal requirement that merchants accept Bitcoin as payment. Businesses in El Salvador are no longer required to accept the cryptocurrency for payments.
Government Bitcoin Holdings
The US government remains the world's largest BTC holder, currently holding 329,693 BTC worth $20.7 billion. The China government holds 190,000 BTC, valued at $11.9 billion, followed by the UK government with 61,245 BTC valued at $3.84 billion. The Bhutan and El Salvador governments hold the fourth and fifth positions, with 10,769 BTC and 7,474 BTC, respectively.
El Salvador's reduced investment in Bitcoin is part of its compliance with the IMF's conditions for a $1.4 billion bailout, which included scaling back pro-Bitcoin policies. The country's Bitcoin fund reduction aims to avoid exposing taxpayers' money to the cryptocurrency's price volatility.