Key Takeaways
El Salvador, the nation that once boldly embraced Bitcoin as legal tender, is now pivoting its strategy. Facing economic pressures and IMF scrutiny, the country is poised to significantly curtail its Bitcoin experiment.
This shift marks a notable turn for a Nation that once led the charge in cryptocurrency adoption.
However, its involvement in the crypto industry is not over, as El Salvador signed a new deal with Argentina to boost crypto regulation in Latin America.
However, El Salvador remains among the top holders of Bitcoin. Several countries worldwide have begun to hold Bitcoin officially, leveraging the cryptocurrency for various strategic, economic, and regulatory purposes. The U.S. leads in Bitcoin holdings, with 207,189 BTC valued at approximately $20.93 billion. These holdings stem largely from assets seized in legal operations, reflecting the U.S.’s proactive regulatory engagement with cryptocurrency markets.
Despite stringent cryptocurrency trading and mining bans, China holds 194,000 BTC worth about $19.59 billion.
These holdings are primarily the result of confiscated assets, highlighting a complex relationship between regulatory policies and actual practices. Meanwhile, the UK holds 61,000 BTC, valued at $6.16 billion, largely tied to law enforcement and financial recovery operations.
Ukraine has become a significant Bitcoin holder with 46,351 BTC, valued at $4.68 billion. The Nation has used Bitcoin for fundraising amid ongoing geopolitical challenges.
Bhutan, a surprising player in the Bitcoin landscape, has quietly accumulated 13,029 BTC worth $1.31 billion, likely as part of its efforts to diversify and modernize its economic portfolio.
El Salvador, the first country to adopt Bitcoin as legal tender, holds 5,942 BTC valued at $600 million. Finland’s 1,981 BTC, valued at $200 million, stems mainly from confiscated assets, showcasing a cautious yet pragmatic approach.
Georgia’s holdings are modest at 66 BTC, valued at $6.6 million, marking a minimal but notable presence in cryptocurrency.
Before signing an official deal with the IMF, El Salvador joined forces with Argentina to boost the crypto industry in Latin America.
Juan Carlos Reyes, head of El Salvador’s crypto regulatory body CNAD, and Roberto Silva, president of Argentina’s CNV, signed an agreement to collaborate on crypto regulation.
Reyes highlighted the partnership’s dual objectives: sharing El Salvador’s expertise to support well-regulated crypto industries globally and expanding the international reach of regulated companies.
He praised Argentina’s innovative approach and high adoption rate as key reasons for the collaboration.
While specific details of the deal remain undisclosed, Reyes noted the agreement aims to foster knowledge exchange and crypto innovation.
He described the partnership as a foundation for greater regional cooperation to promote the digital asset sector.
El Salvador‘s early leadership in crypto regulation, following its adoption of Bitcoin as legal tender, positions it as a valuable partner.
Meanwhile, Argentina’s President Javier Milei has shown ideological support for cryptocurrencies, gaining popularity among crypto developers for his inflation-mitigating policies.