Key Insights
- El Salvador has continued purchasing bitcoin, increasing its holdings to 6,111.18 BTC despite an IMF deal requiring the government to limit cryptocurrency engagement.
- The IMF’s March 3 document reaffirmed that El Salvador must confine its bitcoin-related activities as part of a $1.4 billion loan agreement.
- President Nayib Bukele remains committed to bitcoin acquisitions, stating on March 5 that purchases will not stop despite global criticism.
SAN SALVADOR (MarketsXplora) – El Salvador has continued acquiring bitcoin despite an agreement with the International Monetary Fund (IMF) to curb its cryptocurrency investments, signaling defiance of global financial recommendations.
The Central American nation purchased an additional six bitcoins on Sunday, bringing its total holdings to 6,111.18 BTC, valued at approximately $504 million at current market prices, according to the country’s Bitcoin Office. This marks an increase from the 6,072 BTC recorded on Feb. 9.
In December, El Salvador secured a $1.4 billion loan deal with the IMF as part of a broader financial package expected to exceed $3.5 billion. Under the agreement, the government pledged to scale back its bitcoin engagement to meet IMF requirements. In January, the country’s Legislative Assembly passed a bill aligning with those commitments, Reuters reported.
However, the IMF reiterated its stance on March 3, publishing a document detailing conditions for El Salvador’s extended fund facility. “Going forward, program commitments will confine government engagement in Bitcoin-related economic activities, as well as government transactions in and purchases of Bitcoin,” said IMF Deputy Managing Director Nigel Clarke.
Bukele Reaffirms Bitcoin Commitment as El Salvador
Despite these stipulations, El Salvador’s bitcoin reserves continue to grow. President Nayib Bukele reaffirmed the government’s stance last week, making it clear that bitcoin purchases will not cease. “No, it’s not stopping,” Bukele wrote in a post on X on March 5. “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.”
El Salvador became the first country in the world to adopt bitcoin as legal tender in 2021, a move that has drawn both praise from cryptocurrency advocates and criticism from international financial institutions. The country’s persistent investment in bitcoin suggests it remains committed to its digital asset strategy despite external pressures.