Crypto Journalist
Anas Hassan
Crypto Journalist
Anas Hassan
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The Central Reserve Bank of El Salvador acquired 13,999 troy ounces of gold worth $207.4 million, marking its first precious metals purchase since 1990 as the country diversifies international reserves amid a confirmed pause in Bitcoin accumulation.
According to BCR, the acquisition increased holdings from 44,106 to 58,105 troy ounces following International Monetary Fund guidance.
The gold purchase follows the IMF’s confirmation that El Salvador halted Bitcoin acquisitions in February 2025, pausing President Nayib Bukele’s aim of making daily purchases.
The fund’s July review revealed no new state-backed Bitcoin buys despite on-chain movements attributed to internal wallet transfers rather than fresh acquisitions.
Strategic Reserve Diversification
The Central Reserve Bank positioned the gold acquisition as a medium and long-term strategy for strengthening international reserves.
Gold represents approximately 20% of global central bank reserves worldwide, ranking second only to dollar-denominated holdings.
Various central banks purchased over 1,000 tons of gold annually during the past three years.
The transaction was made possible by the strengthened Central Reserve Bank assets under President Bukele’s administration, which coincided with improved macroeconomic stability.
Gold serves as a universal strategic asset, helping ensure diversified and secure long-term reserves for the nation.
El Salvador continues to hold approximately 6,244 BTC, valued at $742 million, according to the Bitcoin Office.
The treasury remains profitable with 127% gains based on the average acquisition price of $46,000 per Bitcoin.
Bitcoin Policy Retreat Under IMF Pressure
Earlier this year, Congress approved amendments eliminating mandatory Bitcoin acceptance for businesses in January 2025, passing legislation 55-2 just minutes after Bukele submitted the bill.
The reforms align with the $1.4 billion IMF loan agreement, while maintaining Bitcoin’s status as a legal tender.
The IMF praised policy changes for reducing fiscal risk and improving transparency.
Bitcoin no longer receives mandatory treatment, with the fund pushing El Salvador to classify cryptocurrency as a financial asset rather than a currency.
Blockchain analysts have observed steady daily transfers of 1 BTC from exchanges like Binance and Bitfinex to government-linked addresses.
However, the IMF attributes these movements to technical accounting rather than official purchases.
Due to the recent reforms, the Chivo wallet, once promoted as a flagship adoption tool, will be privatized and removed from government oversight.
Officials said the shift reduces strain on public finances while maintaining operational capability under private control.
Quantum Security and Regulatory Adaptation
Notably, the country recently split its Bitcoin treasury across 14 separate addresses to enhance security against quantum computing threats.
Officials emphasized the need for preparations to address potential vulnerabilities from advancements in quantum technology that could compromise Bitcoin’s cryptographic security.
Quantum computers using qubits can process vast amounts of data at massive speeds.
Shor’s algorithm could break elliptic curve cryptography, which secures Bitcoin’s public and private keys, if deployed on sufficiently powerful quantum machines.
Cybersecurity specialists estimate 30% of Bitcoin’s circulating supply, roughly 6-7 million BTC, remains vulnerable in older address formats, exposing public keys.
Deloitte researchers suggest 25% of all Bitcoin could face risk if quantum capabilities mature faster than expected.
The security overhaul addresses warnings from industry veterans about “harvest now, decrypt later” strategies where adversaries collect encrypted blockchain data for future quantum decryption.
Some experts suggest such capabilities may emerge within years rather than decades.
As part of the country’s crypto adoption, El Salvador proposed cross-border regulatory sandbox programs with the SEC for real estate tokenization and capital raising pilots.
The initiative aims to generate practical data on token classification and custody solutions within U.S. frameworks.
The country’s National Commission on Digital Assets has implemented tokenization projects across various asset classes, with risk matrices potentially informing U.S. regulatory approaches.
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