El Salvador Doubles Down on Bitcoin Despite IMF Pressure
1min read El Salvador's President Nayib Bukele has reaffirmed the country's commitment to Bitcoin, despite facing funding demands from the International Monetary Fund (IMF). In a recent statement, Bukele dismissed speculation that el Salvador would halt its Bitcoin purchases, stating that the country would continue acquiring BTC regardless of external pressures.
Following Bukele's remarks, El Salvador's National Bitcoin Office confirmed a fresh Bitcoin acquisition, bringing the country's total holdings to 6,101 BTC, valued at approximately $530 million at the time of reporting. This move comes amid reports that El Salvador has agreed to limit its government's direct involvement in BTC-related activities, as outlined by the IMF.
The IMF has stipulated that El Salvador must introduce stricter oversight of digital assets to align with evolving global financial regulations. As part of this arrangement, the Central American country is barred from purchasing Bitcoin voluntarily, including through mining operations. The only exception applies to Bitcoin obtained via seizures, forfeitures, or other legal enforcement actions.
This development follows El Salvador's earlier agreement to ease its Bitcoin policies in exchange for an initial $1.4 billion financial aid package from the IMF. The conditions require the removal of mandatory Bitcoin acceptance for businesses and discontinuing tax payments in BTC.
Bukele's statement has drawn a divided response within the crypto space. While some applaud his continued Bitcoin advocacy, others call for greater transparency regarding how El Salvador will navigate its IMF commitments. Some industry leaders, such as JAN3 CEO Samson Mow and Synonym CEO John Carvalho, have urged Bukele to clarify the country's long-term plan for maintaining its BTC strategy within the new regulatory constraints.
Stacy Herbert, the director of El Salvador's National Bitcoin Office, has criticized those who doubt the government's commitment, stating that some "bitcoiners" trust the words of the IMF over the stacking actions of El Salvador recorded on the Bitcoin blockchain.
Despite the IMF agreement clearly stating that the El Salvadorian government may not continue to acquire Bitcoin in any format, including mining, Bukele has maintained his stance on Bitcoin adoption. The IMF has the power to revoke funding if El Salvador fails to comply with this requirement, which could cost the country $3.5 billion over the agreement term. As of now, it remains unclear whether El Salvador has identified a loophole or alternative strategy to continue its Bitcoin purchases without violating the 