The government of El Salvador defended its continuous bitcoin purchases before critics, even as the market is currently experiencing a downturn. Vice-President Felix Ulloa stated that bitcoin was part of a reserve strategy and that the country is preparing for a world where fiat currencies will disappear.
El Salvador States Bitcoin Is Not a Stock but a Reserve Asset
The government of El Salvador has faced brazen criticism for sustaining a continuous bitcoin purchase strategy even as the market is facing a slump.
Felix Ulloa, Vice-President of El Salvador, defended the strategic reserve program and the “one bitcoin a day” purchase schedule proposed by President Bukele. In recent statements, Ulloa highlighted the relevance of bitcoin as a reserve asset for El Salvador’s future.
When asked about the persistence of the national bitcoin purchasing program, Ulloa declared:
“ Bitcoin is not a stock; it’s not traded on the stock market, its value doesn’t fluctuate, and it’s not for speculation. We understand bitcoin as a strategic state reserve.”
Ulloa also remarked that, as the country does not intend to sell BTC, it has neither incurred losses nor accrued earnings regarding its bitcoin holdings. He stressed that the nation’s treasury was not betting on winning or losing in fiat currency terms, as these currencies are in the process of disappearing, with the nations holding more cryptocurrency having the upper hand in a future digital world.
“When people understand that, and the world understands that we are no longer dealing with paperwork and the dollar, the pound, and the euro, but that there will be this financial freedom in the world, in the international market, they will understand,” he concluded.
While El Salvador agreed to drop bitcoin as legal tender and confine the public sector’s bitcoin-related economic activities as it inked a credit arrangement with the International Monetary Fund (IMF), it has continued to add bitcoin to its reserves. According to the National Bitcoin Office (ONBTC), El Salvador holds 7,568.37 BTC valued at over $507 million at the time of writing.
FAQ
- What has prompted criticism of El Salvador’s bitcoin purchasing strategy?
The government faces backlash for its continued “one bitcoin a day” purchase strategy amid a declining market.
- How does Vice-President Felix Ulloa justify the bitcoin reserve strategy?
Ulloa described bitcoin as a strategic state reserve, emphasizing its future importance for El Salvador rather than viewing it as a speculative asset.
- What is El Salvador’s current stance on selling its bitcoin holdings?
Ulloa stated that the country does not intend to sell its bitcoin, claiming it has neither incurred losses nor realized gains from its BTC assets.
- What recent developments have occurred regarding El Salvador’s bitcoin holdings?
Despite agreeing to limit bitcoin’s role as legal tender following an IMF arrangement, El Salvador has continued to add to its reserves, holding approximately 7,568.37 BTC, valued at over $507 million.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitcoin Breaks Through $75,000: Capital Inflow and Supply Tightening Create Momentum, Probability of Reaching $80,000 Rises to 56%
Bitcoin surged during Asian early trading, breaking through $75,000 and reaching new highs, with gains extending to an eighth consecutive trading day, signaling recovery in market sentiment. Declining exchange inflows and heightened whale trading activity reinforce the upward momentum. Capital is shifting from gold to Bitcoin, though macro uncertainty remains. $75,000 has become key support, and future trends face testing.
GateNews3m ago
SEC Plans to Cancel Quarterly Earnings Report System: US Stock Transparency May Be Reshaped, Bitcoin and Ethereum Face New Variables
The US SEC plans to abolish the requirement for listed companies to publish quarterly financial reports, replacing it with two reports per year, expected to be implemented in April 2026. This measure may lower compliance costs for companies but has also sparked controversy, as it could increase information asymmetry and market volatility, affecting stock and digital asset markets.
GateNews9m ago
Why Did MSTR Stock Surge? Strategy Splurges $1.57 Billion to Buy Bitcoin, BTC May Surge to $100,000
Strategy purchased 22,337 bitcoins at an average price of $70,194 between March 9-15, bringing its total holdings to 761,068 bitcoins and strengthening its position as the world's largest publicly listed bitcoin holder. This increase in holdings drove MSTR stock price up approximately 6%. Market sentiment toward bitcoin has turned more optimistic, with analysts pointing out that if bitcoin maintains above $72,500, it has the potential to challenge higher price levels, while macroeconomic factors will also impact the market.
GateNews13m ago
ETF Inflows Push Crypto Market Higher: Bitcoin Approaches $75,000, ZEC Surges 18% in a Single Day
On March 17, the cryptocurrency market rebounded significantly due to substantial ETF inflows, with total market capitalization breaking through $2.50 trillion and reaching a six-week high. Bitcoin price briefly approached $75,000, potentially facing pullback risks in the short term. Privacy asset Zcash performed exceptionally well, with gains reaching 18%. OpenSea delayed its token issuance plan to address market uncertainty. The U.S. SEC is considering easing corporate financial disclosure requirements, which could benefit risk assets. The market still faces headwinds and profit-taking pressure.
GateNews16m ago
