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El Salvador Adds 14,000 Troy Ounces of Gold After Bitcoin Accumulation Pause, Total Holdings Hit $207M

El Salvador Adds 14,000 Troy Ounces of Gold After Bitcoin Accumulation Pause, Total Holdings Hit $207M

The Central Reserve Bank of El Salvador acquired 13,999 troy ounces of gold price $207.4 million, marking its first treasured metals buy since 1990 because the nation diversifies worldwide reserves amid a confirmed pause in Bitcoin accumulation.

According to BCR, the acquisition elevated holdings from 44,106 to 58,105 troy ounces following International Monetary Fund steerage.

El Salvador Adds 14,000 Troy Ounces of Gold After Bitcoin Accumulation Pause, Total Holdings Hit $207M
Source: BCR

The gold buy follows the IMF’s confirmation that El Salvador halted Bitcoin acquisitions in February 2025, pausing President Nayib Bukele’s goal of making every day purchases.

The fund’s July overview revealed no new state-backed Bitcoin buys regardless of on-chain actions attributed to inner pockets transfers moderately than recent acquisitions.

Strategic Reserve Diversification

The Central Reserve Bank positioned the gold acquisition as a medium and long-term technique for strengthening worldwide reserves.

Gold represents roughly 20% of world central financial institution reserves worldwide, rating second solely to dollar-denominated holdings.

Various central banks bought over 1,000 tons of gold yearly throughout the previous three years.

The transaction was made potential by the strengthened Central Reserve Bank property beneath President Bukele’s administration, which coincided with improved macroeconomic stability.

Gold serves as a common strategic asset, serving to guarantee diversified and safe long-term reserves for the nation.

El Salvador continues to carry roughly 6,244 BTC, valued at $742 million, in accordance with the Bitcoin Office.

The treasury stays worthwhile with 127% features based mostly on the typical acquisition worth of $46,000 per Bitcoin.

Bitcoin Policy Retreat Under IMF Pressure

Earlier this 12 months, Congress approved amendments eliminating obligatory Bitcoin acceptance for companies in January 2025, passing laws 55-2 simply minutes after Bukele submitted the invoice.

The reforms align with the $1.4 billion IMF mortgage settlement, whereas sustaining Bitcoin’s standing as a authorized tender.

The IMF praised coverage adjustments for lowering fiscal danger and bettering transparency.

Bitcoin not receives obligatory therapy, with the fund pushing El Salvador to categorise cryptocurrency as a monetary asset moderately than a forex.

Blockchain analysts have noticed regular every day transfers of 1 BTC from exchanges like Binance and Bitfinex to government-linked addresses.

However, the IMF attributes these actions to technical accounting moderately than official purchases.

Due to the current reforms, the Chivo pockets, as soon as promoted as a flagship adoption software, shall be privatized and faraway from authorities oversight.

Officials stated the shift reduces pressure on public funds whereas sustaining operational functionality beneath non-public management.

Quantum Security and Regulatory Adaptation

Notably, the nation lately split its Bitcoin treasury across 14 separate addresses to reinforce safety in opposition to quantum computing threats.

Officials emphasised the necessity for preparations to deal with potential vulnerabilities from developments in quantum know-how that might compromise Bitcoin’s cryptographic safety.

Quantum computer systems utilizing qubits can course of huge quantities of knowledge at large speeds.

Shor’s algorithm might break elliptic curve cryptography, which secures Bitcoin’s private and non-private keys, if deployed on sufficiently highly effective quantum machines.

Cybersecurity specialists estimate 30% of Bitcoin’s circulating provide, roughly 6-7 million BTC, stays susceptible in older tackle codecs, exposing public keys.

Deloitte researchers recommend 25% of all Bitcoin might face danger if quantum capabilities mature sooner than anticipated.

The safety overhaul addresses warnings from trade veterans about “harvest now, decrypt later” methods the place adversaries acquire encrypted blockchain knowledge for future quantum decryption.

Some consultants recommend such capabilities could emerge inside years moderately than a long time.

As half of the nation’s crypto adoption, El Salvador proposed cross-border regulatory sandbox programs with the SEC for actual property tokenization and capital elevating pilots.

The initiative goals to generate sensible knowledge on token classification and custody options inside U.S. frameworks.

The nation’s National Commission on Digital Assets has carried out tokenization tasks throughout numerous asset lessons, with danger matrices probably informing U.S. regulatory approaches.

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