"El Salvador Doubles Down on Bitcoin Despite IMF Deal, Eyes Trump Boost"

El Salvador's President Nayib Bukele has remained steadfast in his country's Bitcoin strategy, despite facing challenges and criticism. In December 2024, El Salvador secured a new IMF deal, which provided crucial financing for the debt-laden economy but also required the government to relinquish its mandatory Bitcoin acceptance policy and refrain from collecting taxes in Bitcoin. Despite these setbacks, Bukele has continued to accumulate Bitcoin, doubling down on the country's investment in the cryptocurrency.

Bukele's confidence in Bitcoin has been bolstered by the election of President Trump in the US, who has pushed for cryptocurrency expansion and explored a national digital asset reserve. Bukele predicts that Bitcoin's value will surge exponentially under Trump's leadership, further benefiting El Salvador's bet on the cryptocurrency.

El Salvador's Bitcoin strategy has yielded significant profits, with the country's holdings now totaling over 600 BTC, worth nearly $600 million and making up almost 15% of the country's total international reserves. Bukele has referred to these holdings as the country's "first Bitcoin piggy bank."

Bukele's presidency has been marked by a controversial but widely supported crackdown on organized crime, which has led to mass detentions and drawn criticism from human rights groups. Despite this, his hardline approach has earned him widespread popularity among Salvadorans. Bukele's vision for the country extends beyond public safety, as he aims to rebrand El Salvador as a global cryptocurrency haven to attract international investors and grow the economy.

El Salvador is gradually becoming a hotspot for crypto firms thanks to its crypto-friendly regulations. Recently, Tether, a dominant force in the stablecoin market, announced it would relocate to El Salvador after securing a license as a digital asset service provider. The co-founders of USDT, the world's biggest stablecoin, have even moved their residences to the country.

Despite the global attention El Salvador's Bitcoin strategy has garnered, local adoption has been less encouraging. A recent poll revealed that just 7.5% of Salvadorans have used Bitcoin so far. Some residents argue that the nation's "piggy bank" could be put to better use, such as investing in schools, hospitals, and job opportunities.

Experts continue to back Bukele's strategy, which has so far produced significant returns. However, concerns