El Salvador Defies IMF, Vows to Continue Bitcoin Buying
1min read El Salvador's President Nayib Bukele has reiterated his commitment to continue purchasing Bitcoin, despite facing pressure from the International Monetary Fund (IMF). In a March 4 X post, Bukele confirmed that el Salvador would not comply with the IMF's request to halt voluntary Bitcoin accumulation.
The IMF, in a March 3 memorandum, called for an extended arrangement under its $1.4 billion fund facility to El Salvador. The IMF requested the country's public sector to stop voluntarily accumulating Bitcoin (BTC) and to cease Bitcoin mining activities. Additionally, the IMF asked El Salvador to restrict public sector issuance of debt or tokenized instruments that are denominated or indexed in Bitcoin.
El Salvador has been purchasing at least one Bitcoin per day since March 4, as part of its treasury strategy. The country currently holds 6,101 Bitcoin worth $534.5 million, according to data from The National Bitcoin Office of El Salvador. This makes El Salvador the sixth-largest Bitcoin stash of any nation-state, trailing only the US, China, the UK, Ukraine, and Bhutan.
El Salvador initially secured a $1.4 billion funding deal from the IMF in December 2024, in exchange for scaling back its Bitcoin-related initiatives. Some of those measures included making Bitcoin payments voluntary and making tax payments in US dollars. However, Bukele's recent statement suggests that El Salvador will continue its Bitcoin purchases, despite the IMF's request.
El Salvador made Bitcoin legal tender in September 2021, becoming the first country to do so. However, in January, El Salvador passed a law to make BTC acceptance voluntary for private sector merchants, narrowing Bitcoin's status as legal tender.
The IMF's request comes as El Salvador faces economic challenges, including high inflation and a widening fiscal deficit. The IMF has expressed concerns about El Salvador's Bitcoin strategy, warning that it could exacerbate these issues. However, Bukele has remained steadfast in his support for Bitcoin, arguing that it can help drive economic growth and financial inclusion in the country.
