Summary
-
Despite IMF loan conditions, El Salvador has added over 13 BTC since March 1st, demonstrating unwavering commitment to its Bitcoin strategy.
-
Bukele openly rejects IMF pressure to halt Bitcoin accumulation, asserting El Salvador’s resolve to continue its Bitcoin policy.
-
El Salvador’s pro-Bitcoin stance attracts major crypto companies like Bitfinex and Tether to relocate their operations to the country.
Ignoring continued pressure from the International Monetary Fund (IMF), El Salvador has demonstrably increased its Bitcoin (BTC) holdings, adding over 13 BTC since the beginning of March.
This move underscores President Nayib Bukele’s unwavering commitment to Bitcoin, even as the IMF actively discourages public sector investment in the cryptocurrency.
Despite stipulations tied to a $1.4 billion IMF loan obtained in December 2024—aimed at curbing El Salvador’s Bitcoin involvement—the nation persists in its accumulation strategy.
El Salvador’s Economic Risks With IMF
According to official figures from El Salvador’s Bitcoin Office, the country’s treasury now commands a Bitcoin portfolio exceeding 6,105 BTC.
At current market prices, this digital stockpile surpasses a valuation of $527 million. While the nation’s typical acquisition rate hovers around one BTC daily.
An anomalous purchase of 5 BTC on March 3rd signals an accelerated bullish approach to Bitcoin, defying IMF recommendations.
The IMF loan agreement sought to push El Salvador away from Bitcoin, specifically mandating the reversal of its legal tender status and a general reduction in public sector engagement.
El Salvador’s Defiant Bitcoin Strategy
As part of complying (at least ostensibly) with IMF loan prerequisites, El Salvador’s legislative body revised its Bitcoin legislation in January 2025.
In a significant 55-2 vote, Congress effectively repealed the previous Bitcoin law framework. Yet, this legal maneuver hasn’t translated to a change in fiscal strategy.
El Salvador’s government demonstrably continues to acquire Bitcoin, as evidenced by a two-coin purchase on February 1st, alongside the sustained daily Bitcoin accumulation pattern.
On March 3rd, the IMF once more voiced its displeasure, explicitly demanding El Salvador halt further Bitcoin purchases and refrain from issuing Bitcoin-linked debt instruments or tokenized securities.
Nayib Bukele, El Salvador’s president, directly responded to this latest wave of IMF criticism, reaffirming the nation’s dedication to Bitcoin accumulation.
He dismissed the IMF’s ongoing objections with a curt characterization—labeling it “whining”—thus showcasing a firm stance against international financial institution pressure.
“If it didn’t stop when the world turned against us, and even most ‘bitcoiners’ abandoned ship, there’s no chance it will stop now, or ever,” Bukele asserted resolutely.
This unwavering pro-Bitcoin policy from El Salvador has incentivized several prominent crypto businesses to announce their relocation to the country.
Illustratively, Bitfinex Derivatives declared its move from Seychelles to El Salvador on January 7th, followed by stablecoin issuer Tether, which announced its headquarters relocation to El Salvador just days later on January 13th.
Also Read: El Salvador Changes Bitcoin Law for IMF Deal but Maintains Crypto Commitment
El Salvador has recently made a significant change regarding its stance on Bitcoin (BTC), which was swiftly approved by Congress. This new legislation clarifies that while businesses are not required to accept BTC as a form of payment, Bitcoin remains classified as legal tender within the country. This adjustment is part of a broader financial strategy that includes a $1.4 billion loan agreement with the International Monetary Fund (IMF). Despite this modification, El Salvador remains committed to Bitcoin, continuing to acquire BTC as a key component of its financial strategy. Globally, other institutions are also exploring Bitcoin reserves, with notable figures such as … [Read More]
*Disclaimer*: We at Bitcoinleef.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
Wallets