The Central Reserve Bank of El Salvador has made a significant move by acquiring 13,999 troy ounces of gold, valued at approximately $207.4 million. This marks the first precious metals purchase by the nation since 1990, reflecting a strategic pivot to diversify its international reserves amid a confirmed halt in Bitcoin acquisitions. Following this acquisition, El Salvador’s gold reserves have increased from 44,106 to 58,105 troy ounces, aligning with guidance from the International Monetary Fund (IMF).
This latest acquisition of gold comes in light of a recent IMF review, which confirmed that El Salvador paused its Bitcoin accumulation efforts earlier this year. The IMF had determined this pause significant, as there have been no new state-backed Bitcoin purchases since February 2025, despite some on-chain movements being misattributed to fresh Bitcoin acquisitions. Instead, these movements were the result of internal wallet transfers.
The Central Reserve Bank described the gold purchase as part of a medium to long-term strategy aimed at fortifying international reserves. Currently, gold constitutes around 20% of global central bank reserves, second only to U.S. dollar holdings. In recent years, central banks globally have been active in acquiring gold, purchasing over 1,000 tons annually. This transaction was made possible by the stability of the Central Reserve Bank’s assets under President Nayib Bukele’s administration, highlighting an overall improvement in macroeconomic conditions.
Despite pausing Bitcoin purchases, El Salvador still holds roughly 6,244 BTC, valued at $742 million, as reported by the Bitcoin Office. The country’s treasury has reported a substantial profit, boasting a 127% gain from its average acquisition price of $46,000 per Bitcoin.
In January 2025, amendments to existing crypto laws were passed by El Salvador’s Congress, eliminating mandatory Bitcoin acceptance for businesses. This legislative move, approved with a vote of 55-2, aligns with a deal made with the IMF, aimed at reducing the country’s exposure to cryptocurrency while still retaining Bitcoin as legal tender. The IMF has praised these reforms for improving fiscal risk management and transparency around cryptocurrency.
The modifications indicate a shift in Bitcoin’s classification, with the IMF recommending it be recognized as a financial asset rather than currency. Blockchain analysts have noted a continuous flow of 1 BTC from exchanges like Binance and Bitfinex to addresses associated with the government, although the IMF interprets this as technical accounting rather than official purchases.
In a further reflection of these regulatory changes, El Salvador’s Chivo wallet, which was originally touted as a central tool for Bitcoin adoption, is set to be privatized, removing it from direct government oversight. Officials believe this transition will ease the financial burden on public funds while sustaining operational capabilities through private management.
In a proactive measure against emerging technological threats, such as quantum computing, El Salvador has split its Bitcoin treasury across 14 separate addresses to enhance security. With advancements in quantum technology posing potential risks to Bitcoin’s cryptographic protections, officials have acknowledged the need for robust security measures. Industry experts have noted that a significant portion of Bitcoin’s circulating supply could be susceptible to these risks if quantum computing capabilities advance rapidly.
Amid these changes, El Salvador is also pursuing cross-border regulatory sandbox initiatives in collaboration with the U.S. Securities and Exchange Commission (SEC). This effort aims to explore asset tokenization and capital-raising pilots, generating practical insights on token classification and custody solutions within the American regulatory framework. The National Commission on Digital Assets in El Salvador has implemented various tokenization projects, focusing on creating risk matrices that could potentially inform U.S. regulatory approaches to cryptocurrencies and digital assets.
