The Central American country of El Salvador, the first country in the world to declare bitcoin legal tender, now has more than $340 million in bitcoin, according to Arkham Intelligence. The country has been gradually accumulating new bitcoin at a rate of approximately one bitcoin a day since March, indicating the country may scoop up over 100 bitcoins by the close of 2024.

Right now, the country’s current bitcoin reserve stands at 5,856 bitcoin held in a cold wallet, reflecting holdings of $344 million in cryptocurrency based on current bitcoin prices.

El Salvador’s consistent accumulation of bitcoin during market turmoil and international skepticism might surprise observers. It has also invited the scrutiny of the International Monetary Fund (IMF), which El Salvador is currently negotiating with over a possible loan program.

Earlier this month, the IMF admonished the country to promote transparency around its bitcoin projects and highlighted the risks of the volatile cryptocurrency. Under bitcoin maximalist President Nayib Bukele, the country has pursued an aggressive pro-bitcoin program, including a proposal to erect a tax-free "Bitcoin City.”

“On bitcoin, while many of the risks have not yet materialized,” the IMF said recently about El Salvador's steady pursuit of the cryptocurrency, “there is joint recognition that further efforts are needed to enhance transparency and mitigate potential fiscal and financial stability risks from the bitcoin project.”

However, two years ago, the IMF stated that bitcoin’s status as legal tender imperiled a potential loan from the IMF, and recommended the country “narrow the scope of the bitcoin law by removing bitcoin's legal tender status.”

Despite bitcoin's official status in the Central American country, however, its use has been limited. Salvadorans are highly dependent on international remittances to cover household expenses, with the average amount reaching almost $200 a month. While President Nayib Bukele has long touted the benefits of bitcoin for remittances, only 1.3% of remittances last year were carried out using crypto. The high bitcoin transaction fees can be onerous, cutting into families’ meager savings, and reducing use in a country with high remittance demand.