El Salvador’s President Nayib Bukele Engages in Bitcoin Talks with Michael Saylor

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Muntasir Aumio
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El Salvador’s President Nayib Bukele Engages in Bitcoin Talks with Michael Saylor

Essential Insights

  • Nayib Bukele and Michael Saylor held a conversation about Bitcoin at the presidential palace on February 13.
  • Recent legislative changes in El Salvador have made Bitcoin a voluntary legal tender and outlawed its use for tax payments, in line with IMF loan stipulations.

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On February 13, El Salvador President Nayib Bukele met with Michael Saylor, founder of Strategy, at Casa Presidencial to discuss Bitcoin matters, as reported by the National Bitcoin Office (ONBTC).

President Bukele also posted a photo on X on February 13, showing a dinner with Saylor at the presidential palace.

At this time, El Salvador added another Bitcoin to its reserves, bringing the total to 6,077 BTC, approximately valued at $590 million, based on data from Arkham Intelligence. This purchase is part of the country’s ongoing dollar-cost-averaging strategy.

Saylor’s Strategy recently resumed acquiring Bitcoin, purchasing 7,633 BTC, thereby increasing its total Bitcoin holdings to 478,740, valued around $46 billion.

ONBTC released additional images from the meeting the following Friday, although further details remain undisclosed.

This encounter occurs following recent changes in El Salvador’s regulatory framework, which made Bitcoin legal tender in 2021. The country has amended its Bitcoin law to secure compliance with a $1.4 billion loan agreement from the International Monetary Fund (IMF).

“The Bitcoin situation in El Salvador is intricately complex, with numerous unanswered questions,” noted Samson Mow in a post on X, characterizing the country’s Bitcoin status as a “glass is half full” scenario.

Mow further stated, “The revisions to the Bitcoin Law are astute and allow the El Salvador government to adhere to the IMF agreement while maintaining its dignity.” He also pointed out that the law no longer categorizes Bitcoin as a currency, yet permits it to be “voluntary legal tender.”

The updates ban the use of Bitcoin for tax payments and governmental fees, establishing restrictions that prevent the government from handling BTC. According to Mow, Article 8 of the amendments eliminates the state’s responsibility to facilitate Bitcoin transactions, which could impact the future of Chivo, the official government crypto wallet.

The IMF has persistently opposed El Salvador’s Bitcoin adoption, citing potential risks to financial stability. The recent loan agreement mandates limitations on the country’s Bitcoin implementation.

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