El Salvador Defies IMF, Buys More Bitcoin Amidst Tariff Storm

El Salvador, the first country to adopt Bitcoin as legal tender, has continued its streak of purchasing the cryptocurrency despite pressure from the International Monetary Fund (IMF) to scale back its pro-Bitcoin policies. On Monday, the Central American nation bought an additional 5 BTC, worth roughly $415,000, as the price of Bitcoin dipped below $83,000.

The latest purchase brings El Salvador's Bitcoin stockpile to 6,100.18, valued at approximately $513 million at current prices. This acquisition comes amidst President Trump's tariffs against Canada, Mexico, and China taking effect, which have contributed to the crypto market's recent struggles.

El Salvador's continued Bitcoin acquisition is notable, as it agreed to scale back some of its pro-Bitcoin policies as part of a $1.4 billion loan deal with the IMF. These adjustments came around three years after the tiny Latin American nation passed the Bitcoin Law in September 2021, making it the first country in the world to officially recognize BTC as legal tender.

Some of the agreements with the IMF included winding down the government-provided crypto wallet, Chivo, and making it optional for local businesses to accept Bitcoin as a means of payment. However, the Salvadoran government has continued to purchase BTC despite the deal, snapping up $1 million worth of the cryptocurrency just a day after signing the agreement with the IMF.

National Bitcoin Office Director Stacy Herbert has stated that El Salvador's plans had not changed post-IMF, and that the country would continue buying BTC for its Strategic Bitcoin Reserve "at possibly an accelerated pace." However, the IMF is now looking to prohibit the voluntary accumulation of BTC by the public sector during the program as part of an extended $1.4 billion funding agreement with the nation.