El Salvador Defies IMF, Continues Bitcoin Accumulation
1min read El Salvador President Nayib Bukele has reiterated his country's commitment to accumulating Bitcoin, despite facing significant pushback from the International Monetary Fund (IMF). The Central American nation first adopted Bitcoin as legal tender in 2021, a move that has since drawn both praise and criticism from the global financial community. Recent amendments to el Salvador’s Bitcoin legislation have made the acceptance of Bitcoin voluntary, although it remains considered legal tender within the country.
The IMF has imposed conditions on a $1.4 billion loan to El Salvador, which include transparency and anti-corruption measures, as well as restrictions on the use of Bitcoin within the government. These conditions have led to speculation that El Salvador might halt its Bitcoin purchases. However, Bukele has firmly dismissed these rumors, stating that the country's commitment to Bitcoin is unwavering. He emphasized that El Salvador's Bitcoin strategy will continue despite external pressures, highlighting the economic benefits of Bitcoin, including its potential to drive financial inclusion and economic growth.
Bukele's stance was further reinforced by the National Bitcoin Office (ONBTC), which has continued to purchase one Bitcoin daily. As of the latest reports, El Salvador's total Bitcoin holdings stand at 6,102.18 BTC. This ongoing accumulation of Bitcoin signals El Salvador's long-term vision for integrating the cryptocurrency into its financial system, despite the IMF's concerns about its volatility and potential impact on national reserves.
The IMF's conditions for the loan include halting public sector acquisitions of Bitcoin, dissolving the Fidebitcoin trust fund by July 2025, and ceasing operations of the Chivo wallet system. Bukele has pushed back against these conditions, asserting that El Salvador will not be deterred from its Bitcoin strategy. He stated that the country's commitment to Bitcoin will not stop, regardless of external pressures or financial constraints. This defiance underscores El Salvador's dedication to a Bitcoin-centric economic strategy, which it believes will bring long-term benefits to the country.
Prominent figures in the cryptocurrency community have expressed support for El Salvador's Bitcoin strategy. Samson Mow, a long-time advocate for El Salvador's Bitcoin adoption, initially suggested that the country's Bitcoin purchases might cease within months. However, he has since acknowledged the continued acquisitions, highlighting the growing institutional confidence in Bitcoin as a hedge against traditional market uncertainties and currency depreciation. This support from the cryptocurrency community further bolsters 