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El Salvador has continued purchasing Bitcoin against the wishes of the International Monetary Fund (IMF)
The nation has added over 30 BTC recently, increasing its holdings to over 6,100 BTC
El Salvador recently took out a $1.4 billion loan from the IMF based on it curtailing its Bitcoin business

El Salvador has persisted in augmenting its Bitcoin reserves, defying the International Monetary Fund’s (IMF) advisories to halt such acquisitions. In recent weeks, the country has acquired over 30 BTC, bringing its total holdings to more than 6,100 BTC. President Nayib Bukele remains steadfast in his support for Bitcoin, emphasizing the nation’s dedication to its cryptocurrency strategy, despite the terms of a recent $1.4 billion IMF loan stating that it should limit its Bitcoin exposure.

Bukele Ignores Terms of $1.4 Billion Loan

In December 2024, El Salvador secured a $1.4 billion loan agreement with the IMF, which included stipulations to limit the country’s involvement with Bitcoin. These conditions encompassed ceasing further Bitcoin purchases and gradually reducing the government’s participation in the state-run Chivo wallet.

Despite these terms, El Salvador has continued to acquire Bitcoin through its Bitcoin Office, a government entity operating outside the traditional fiscal sector. Recent reports indicate that it has added over 30 BTC to its reserves, increasing its total holdings to more than 6,100 BTC, valued at approximately $678 million. These acquisitions have been made through daily purchases, a strategy that the government has maintained despite international pressure. 

President Bukele publicly dismissed concerns regarding these purchases, stating, “No, it’s not stopping. If it didn’t stop when the world ostracized us and most ‘bitcoiners’ abandoned us, it won’t stop now, and it won’t stop in the future.” 

Bukele Walking a Tightrope

Bukele’s actions will put the ball back in the IMF’s court as far as El Salvador’s $1.4 billion loan is concerned. If it feels that the President has contravened the terms of the loan it may be within its rights to pull it and demand full repayment, which could be catastrophic for the country.

While the IMF continues to express concerns over the potential risks associated with cryptocurrency investments, El Salvador views Bitcoin as a strategic asset to diversify its economy and attract foreign investment. As the situation evolves, the international community will closely monitor the outcomes of El Salvador’s Bitcoin strategy and its implications for global financial policies.

The post El Salvador Defies IMF and Buys More Bitcoin appeared first on FullyCrypto.

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Filed under: Bitcoin - @ May 28, 2025 8:24 am