As the crypto market faces a prolonged downturn, El Salvador’s government continues its daily bitcoin purchases, drawing sharp criticism. Vice-President Felix Ulloa pushed back, stating that bitcoin is not a stock and should not be judged by short-term price swings. “Bitcoin is not traded on the stock market; its value doesn’t fluctuate like a stock. It’s a strategic state reserve,” Ulloa said.
‘One Bitcoin a Day’ Stays, Here’s Why
President Nayib Bukele’s “one bitcoin a day” program has been under scrutiny as BTC prices dropped. Ulloa dismissed the notion of pausing purchases, arguing that the country does not view bitcoin as a speculative asset. “We are not betting on winning or losing in fiat currency terms. These currencies are disappearing. Countries holding more crypto will have an edge in the digital future,” he added.
No Sale Means No Loss, Says VP
Ulloa emphasized that since El Salvador has no intention to sell its bitcoin holdings, there are no realized losses or gains in fiat terms. He recycled the thesis that fiat currencies like the dollar, pound, and euro are on their way out, replaced by a global financial freedom where bitcoin serves as a reserve asset. “When people understand that we are moving beyond paper money, they will understand our strategy,” he concluded.
IMF Deal Doesn’t Stop Bitcoin Accumulation
Last year, El Salvador agreed to scale back bitcoin’s role as legal tender in return for a $1.4 billion credit facility from the International Monetary Fund (IMF). Yet the country has continued to add to its reserves. According to the National Bitcoin Office (ONBTC), El Salvador currently holds 7,568.37 BTC, valued at over $507 million at the time of reporting.
IMF Approves $1.4B Credit, Fiscal Support In Place
The IMF informally approved the deal in 2025 and finalized it this year. The program aims to boost El Salvador’s finances but requires limiting public sector exposure to bitcoin. The nation appears to walk a fine line: following IMF constraints on legal tender status while continuing to stack bitcoin under the “strategic reserve” argument.