El Salvador Defies IMF, Adds 8 BTC to 6,190 Holdings

El Salvador has continued to resist pressure from the International Monetary Fund (IMF) to halt its Bitcoin accumulation. In a statement released on May 27, the IMF urged the Central American country to keep its Bitcoin holdings unchanged and to fully exit its role in the Chivo wallet by the end of July. This directive follows a staff-level agreement that would unlock $120 million for El Salvador as part of a $1.4 billion loan deal. However, the final approval still depends on the IMF executive board and whether the country meets its policy commitments.

Despite the IMF's warnings, El Salvador has aggressively acquired more Bitcoin over the past few months. The government added at least eight more BTC to its coffers in the past week alone and has shown no sign of slowing down. El Salvador’s national Bitcoin office confirmed the country now holds nearly 6,190 BTC. At current prices, this stash is worth over $674 million and has generated unrealized profits of more than $200 million.

President Nayib Bukele, the principal architect of El Salvador’s adoption of Bitcoin, has remained firm on the policy. He has dismissed external pressure and consistently emphasized the economic gains achieved under his administration’s BTC-first approach. Stacy Herbert, who leads the Bitcoin office, reinforced this stance. She said the government is actively shaping the legal and financial infrastructure needed to attract capital by adopting the top crypto.

Herbert stated: “We are working to build the robust capital markets needed for an economic miracle to happen: with both our proposed legislation to attract international capital as well as our work establishing the world’s first Strategic Bitcoin Reserve and encouraging a government policy of aggressive bitcoin accumulation.”

El Salvador first signed the financing arrangement in December 2024, and one key condition was to reduce direct state involvement in Bitcoin-related activities. However, the country has shown no intention of complying with this condition, continuing to accumulate more Bitcoin despite the IMF's warnings. This stance has put El Salvador in a precarious position, as the final approval of the loan deal depends on the country's compliance with the IMF's policy commitments.

The IMF's pressure on El Salvador to halt its Bitcoin accumulation highlights the ongoing debate surrounding the role of cryptocurrencies in the global financial system. While some countries and investors see Bitcoin as a potential hedge against inflation and a means of attracting capital, others view it as a risky and volatile asset that could destabilize the economy. El Salvador's continued resistance to the IMF's pressure suggests that the country is willing to take on this risk in pursuit of its economic goals.