El Salvador Adds 240 BTC to Reserves Despite IMF Agreement

El Salvador has continued to invest in Bitcoin, adding 240 BTC to its reserves since December 2024, despite an agreement with the International Monetary Fund (IMF) that was supposed to freeze such purchases. This move underscores the country's commitment to its crypto strategy, even as it navigates the complexities of international financial agreements.

The IMF had offered El Salvador a $1.4 billion lifeline, but the country has chosen to maintain its crypto-friendly stance. President Nayib Bukele has been vocal about his support for Bitcoin, and the latest addition of 240 BTC brings the total to 6,209 BTC, valued at approximately $550 million. This represents nearly 15% of the country’s foreign exchange reserves, highlighting the significant role that Bitcoin plays in El Salvador's financial strategy.

The purchases have been made through private entities or reclassified assets, allowing El Salvador to bypass the strict terms of the IMF agreement. Rodrigo Valdes, IMF regional director, confirmed that the country is respecting its commitment not to accumulate Bitcoin through the overall fiscal sector. This strategy allows Bukele to maintain the image of a crypto-friendly nation while still receiving IMF aid.

The IMF's flexibility in interpreting the agreement has sparked criticism, with some analysts suggesting that this "flexibility" is a diplomatic strategy to avoid offending Bukele, who is supported by major geopolitical allies. The rise of controversial crypto players such as Tether and Bitfinex, which have relocated their headquarters to El Salvador, adds another layer of complexity. Tether holds $143 billion in assets, more than 25 times the country’s reserves, raising concerns about potential interference and regulatory capture.

Despite the president's enthusiasm for Bitcoin, the citizens of El Salvador are showing growing disaffection. Crypto remittances, which are money transfers sent from abroad, fell by 44.5% in the first quarter of 2025. They now represent only 0.52% of total money transfers, with a value of $16 million compared to $28.83 million in the same period last year. This decline indicates that the use of Bitcoin in daily life remains marginal, despite educational efforts and government initiatives.

Several inhabitants have been expropriated for crypto-infrastructure projects, and none of the major announcements, such as the airport, train, or Bitcoin City, have yet come to fruition. The crypto dream in El Salvador is beginning to crumble, but Bukele remains steadfast in his vision. He continues to project El Salvador as a digital pioneer, with his emblematic campaign "one day, one bitcoin (BTC)" symbolizing a long-term commitment to monetary independence, even if it means going against traditional economic dogmas.