Summary
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El Salvador has expanded its national Bitcoin holdings to 6,173 BTC (valued over $641 million) with a recent acquisition of eight more coins, a move that defies the International Monetary Fund’s (IMF) advice tied to a December 2024 $1.4 billion loan agreement.
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President Nayib Bukele remains staunchly committed to this strategy, publicly stating the Bitcoin accumulation (at least one coin daily since late 2023, managed by the Bitcoin Office) will not cease, despite previous international pressure and the IMF’s conditions.
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While lauded by some in the crypto industry as a pioneering move that could inspire other nations, critics, including the IMF, warn that El Salvador’s continued use of public funds for Bitcoin purchases significantly increases its fiscal volatility and financial risk.
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Despite repealing Bitcoin’s mandatory legal tender status in January 2025 (though it remains a valid transaction method), the government continues its crypto acquisitions, with President Bukele dismissing renewed IMF calls in March 2025 to halt the practice, and the Bitcoin Office overseeing these endeavors.
El Salvador has augmented its national Bitcoin reserves with the procurement of an additional eight coins within the current week, bringing its aggregate holdings to a substantial 6,173 BTC, which translates to a market value surpassing $641 million.
Continued Bitcoin Accumulation Amidst IMF Stipulations
The country’s unwavering dedication to its cryptocurrency initiative continues, despite rigorous stipulations linked to a $1.4 billion financial agreement with the International Monetary Fund (IMF) that was concluded in December 2024.
This agreement, aimed at promoting economic stability and attracting international investment, clearly advised El Salvador to discontinue the deliberate acquisition of Bitcoin by the public sector, although allowances were made for assets obtained through legal confiscation or seizure.
President Bukele’s Unwavering Commitment to Crypto Strategy
President Nayib Bukele, the driving force behind this bold undertaking, remains resolute.
In a statement released on the social media platform X on March 4, 2025, he asserted, “No, it’s not stopping.
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.”
His government has adhered to a consistent pattern of acquiring a minimum of one Bitcoin each day since the latter part of 2023, supplementing this with larger purchases as market dynamics and available capital permit.
These acquisitions are managed by the Bitcoin Office, a specialized governmental body that provides regular updates to the public through its official website and social media outlets.
Pioneering Stance, Industry Acclaim, and Fiscal Warnings
Notwithstanding international skepticism, President Bukele’s strategic direction has established El Salvador as a forerunner among nations, potentially creating a blueprint for other countries to consider Bitcoin as a component of their strategic reserves.
Prominent figures within the cryptocurrency sector have commended this initiative, proposing that it might motivate smaller or developing nations to adopt similar strategies.
Nevertheless, the approach has not been without its detractors.
Critics, notably the IMF, express concerns that El Salvador’s ongoing allocation of public finances towards Bitcoin acquisitions amplifies fiscal instability and subjects the nation to considerable financial jeopardy.
Legislative Adjustments and Persistent Digital Asset Focus
In January 2025, the Salvadoran legislature decisively voted, with a 55 to 2 majority, to revoke the legislation that had established Bitcoin as mandatory legal tender; however, the digital currency continues to be accepted as a legitimate form of payment.
This legislative modification, however, had little effect on the administration’s keen interest in digital assets.
By March, the IMF reiterated its recommendations for El Salvador to cease its Bitcoin purchasing program, an appeal that President Bukele swiftly rejected.
The Bitcoin Office persists in supervising the country’s cryptocurrency operations, including the management of assets held within various governmental platforms like the Chivo Wallet and the National Bitcoin Office.
Also Read: Despite IMF Contract, El Salvador Bought 13 BTC Since March 1
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