This is my hypothesis, posted on another thread a while ago:
I haven’t seen it around clearly exposed, but I figure that those 700 BTCs are meant to back the existing BTCs within the Chivo system, and not so much intended to hold as part of the countries reserves. With now over 1,1 Million Chivo wallet users, presumably nearly all will have redeemed their 30$ in bitcoin voucher, so the 700 BTCs kind of backs current redemptions (roughly, give or take).
While the media keep on making it look like El Salvador is accumulating bitcoin in its reserves much like Microstrategy or Tesla, they are likely covering what needs to be done to back the virtual BTCs people have in their Chivo wallets. The government passed a bill to reserve 150M $ to the Bitcoin Law rollout, so I figure this is part of it.
The adoption of Bitcoin as legal tender in El Salvador was not some momentary lightbulb
move, it was a considered one especially when the US$ was going to cripple the country
even more as it was devalued and the resulting inflation. The bonus is the saving on transfer
fees from FIAT remittances.
Adopting Bitcoin as legal tender for any country is a complicated process and as
DdmrDdmr suggests it isnt just a matter of buying and hodling. They have to figure
all the implications out on their own, nobody is helping them.
Buying at 44k down from 48k is "buying the dip" we all follow Planb, his floor value
for September is ~43k