The government of El Salvador defended its continuous bitcoin purchases before critics, even as the market is currently experiencing a downturn. Vice-President Felix Ulloa stated that bitcoin was part of a reserve strategy and that the country is preparing for a world where fiat currencies will disappear.
El Salvador States Bitcoin Is Not a Stock but a Reserve Asset
The government of El Salvador has faced brazen criticism for sustaining a continuous bitcoin purchase strategy even as the market is facing a slump.
Felix Ulloa, Vice-President of El Salvador, defended the strategic reserve program and the “one bitcoin a day” purchase schedule proposed by President Bukele. In recent statements, Ulloa highlighted the relevance of bitcoin as a reserve asset for El Salvador’s future.
When asked about the persistence of the national bitcoin purchasing program, Ulloa declared:
“ Bitcoin is not a stock; it’s not traded on the stock market, its value doesn’t fluctuate, and it’s not for speculation. We understand bitcoin as a strategic state reserve.”
Ulloa also remarked that, as the country does not intend to sell BTC, it has neither incurred losses nor accrued earnings regarding its bitcoin holdings. He stressed that the nation’s treasury was not betting on winning or losing in fiat currency terms, as these currencies are in the process of disappearing, with the nations holding more cryptocurrency having the upper hand in a future digital world.
“When people understand that, and the world understands that we are no longer dealing with paperwork and the dollar, the pound, and the euro, but that there will be this financial freedom in the world, in the international market, they will understand,” he concluded.
While El Salvador agreed to drop bitcoin as legal tender and confine the public sector’s bitcoin-related economic activities as it inked a credit arrangement with the International Monetary Fund (IMF), it has continued to add bitcoin to its reserves. According to the National Bitcoin Office (ONBTC), El Salvador holds 7,568.37 BTC valued at over $507 million at the time of writing.
FAQ
- What has prompted criticism of El Salvador’s bitcoin purchasing strategy?
The government faces backlash for its continued “one bitcoin a day” purchase strategy amid a declining market.
- How does Vice-President Felix Ulloa justify the bitcoin reserve strategy?
Ulloa described bitcoin as a strategic state reserve, emphasizing its future importance for El Salvador rather than viewing it as a speculative asset.
- What is El Salvador’s current stance on selling its bitcoin holdings?
Ulloa stated that the country does not intend to sell its bitcoin, claiming it has neither incurred losses nor realized gains from its BTC assets.
- What recent developments have occurred regarding El Salvador’s bitcoin holdings?
Despite agreeing to limit bitcoin’s role as legal tender following an IMF arrangement, El Salvador has continued to add to its reserves, holding approximately 7,568.37 BTC, valued at over $507 million.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Price predictions 4/3: BTC, ETH, BNB, XRP, SOL, DOGE, HYPE, ADA, BCH, LINK
Key points:
Buyers are attempting to maintain BTC above the $66,500 level, but several analysts believe that the $60,000 level may crack.
Some major altcoins risk breaking below their immediate support levels, signaling that bears remain in control.
Buyers are attempting to push an
Cointelegraph6m ago
Rich Bitcoin traders lost $337M daily in first quarter of 2026
Bitcoin (BTC) traders holding 100–10,000 BTC realized losses at an average of $337 million per day in Q1 2026, the worst quarter since 2022, according to data from Glassnode.
Key takeaways:
Bitcoin dropped more than 20% after whales last realized losses at a comparable pace in 2022.
Cointelegraph11m ago
Glassnode: Bitcoin whale and shark Q1 average daily losses exceed $300 million
On April 5, Glassnode data showed that in the first quarter, the “sharks” holding 100–1,000 BTC and the “giant whales” holding 1,000–10,000 BTC together incurred losses of about $337 million, with total losses of $30.9 billion year to date. Long-term holders are losing about $200 million per day on average, and the market expects Bitcoin’s potential bottom range to be between $40k and $50k.
GateNews16m ago
VanEck Research Head: BTC derivatives protection demand hits the 99th percentile, releasing a contrarian long setup signal
VanEck research chief Matthew Sigel noted that protective demand in the Bitcoin derivatives market has reached a historical high, suggesting the market may be suitable for establishing long positions. At the same time, he warned that high spending in the AI sector without returns could put pressure on the market.
GateNews1h ago
Bitcoin Transaction Fees Fall to 2011 Lows As Analysts Warn of Slowing Network Activity
A new wave of debate hit crypto social media after Crypto Rover posted that Bitcoin fees had fallen to 2.5 BTC a day, the lowest level since 2011, and argued that on-chain demand was fading. The chart attached to the post shows two things at once: a sharp drop in total transaction fees and a much st
BlockChainReporter2h ago
Bitcoin’s ‘no direction’ action may lead to heavier breakout: Analyst
Bitcoin's prolonged consolidation below $70,000 may indicate a potential rally, despite mixed analyst sentiment. While some predict a breakout, others warn of deeper bearish trends. Current trading is stagnant, with Bitcoin at $66,890.
Cointelegraph2h ago
