El Salvador Defies IMF, Continues Bitcoin Purchases

El Salvador is continuing to accumulate Bitcoin, despite an agreement with the International Monetary Fund (IMF) that was expected to curb its BTC acquisitions.

On March 10, the country purchased an additional 6 BTC, bringing its total holdings to 6,111.18 BTC, valued at approximately $504 million at current market prices. This marks an increase from 6,072 BTC recorded on February 9, according to El Salvador’s Bitcoin Office.

IMF Loan Deal Pressures El Salvador to Scale Back BTC Use

In December 2023, El Salvador reached a $1.4 billion loan agreement with the IMF, with the total financial package expected to exceed $3.5 billion. As part of the deal, the government agreed to limit its Bitcoin-related activities in exchange for funding.

To comply, El Salvador’s Legislative Assembly passed legislation in January aligning with the IMF’s requirements, according to Reuters.

Most recently, on March 3, the IMF published a new report detailing further restrictions for El Salvador under its extended fund facility program.

“Going forward, program commitments will confine government engagement in Bitcoin-related economic activities, as well as government transactions in and purchases of Bitcoin,” wrote Nigel Clarke, IMF deputy managing director.

Bukele Stands Firm: Bitcoin Purchases Will Continue

Despite mounting pressure from the IMF, El Salvador’s Bitcoin strategy remains unchanged. President Nayib Bukele has dismissed the idea of halting Bitcoin purchases, making it clear that the nation remains committed to its BTC strategy.

“No, it’s not stopping,” Bukele wrote on X (formerly Twitter) on March 5.

“If it didn’t stop when the world ostracized us and most ‘bitcoiners’ abandoned us, it won’t stop now, and it won’t stop in the future.”

With El Salvador doubling down on its Bitcoin reserves, the country continues to position itself as a pioneer in national Bitcoin adoption, despite external economic pressures.