- El Salvador defies IMF’s $1.4B deal by purchasing 5 more BTC, totaling 6,101.15 BTC worth $530M.
- Despite IMF restrictions, the nation continues acquiring 1 BTC daily, reinforcing its Bitcoin-centric economic strategy.
- Bukele dismisses speculation, reaffirming BTC accumulation won’t stop despite ongoing global financial scrutiny.
El Salvador has once again made headlines by purchasing five more Bitcoins today, despite an agreement with the International Monetary Fund (IMF) restricting the voluntary accumulation of BTC by the public sector. President Nayib Bukele reaffirmed that the country has no intention of halting its Bitcoin acquisitions in the foreseeable future.
IMF Agreement and Bitcoin Restrictions
The Salvadoran government recently signed an agreement with the IMF, which includes a clause prohibiting the voluntary accumulation of BTC by the public sector. Additionally, the deal prevents the issuance of debt or tokenized instruments indexed to or denominated in BTC. The agreement is tied to a $1.4 billion financial assistance package.
Despite these restrictions, the Central American nation continues purchasing one Bitcoin daily, defying the IMF’s directive. Today’s purchase of five BTC signals a clear contradiction to the agreement, fueling speculation within the crypto community about a possible extension period unknown to the public.
Since making Bitcoin legal tender in 2021, El Salvador has amassed a significant BTC reserve. While the country has faced pushback from international financial institutions, the IMF softened its stance on Bitcoin in October 2023, allowing for amendments to economic policies. However, Bukele’s government has shown no signs of curbing its BTC strategy.
IMF Reveals $3.5B Deal Terms
President Nayib Bukele took to X (formerly Twitter) to address speculation that El Salvador would stop accumulating BTC due to IMF pressure. He dismissed such claims, stating, “‘This all stops in April.’ ‘This all stops in June.’ ‘This all stops in December.’ No, it’s not stopping.”
Bukele’s post coincided with the IMF’s disclosure of additional details regarding its $3.5 billion deal with El Salvador. The financial institution reiterated the prohibition on the voluntary accumulation of Bitcoin by the public sector. However, hours later, El Salvador revealed that it had purchased 19 BTC over the past week, followed by another acquisition of one additional BTC.
The IMF’s statement sparked reactions from prominent Bitcoin advocates, including Samson Mow, a longtime supporter of El Salvador’s Bitcoin strategy. Mow initially claimed that the country’s BTC purchases would cease within months, only to acknowledge the continued acquisitions shortly after the latest purchase was made public.
El Salvador’s BTC holdings now stand at 6,101.15 BTC, valued at approximately $530 million at current market prices. Despite external pressures, the government’s persistence in accumulating BTC reflects its long-term vision for integrating the digital asset into its economy.
El Salvador’s defiance of IMF restrictions highlights its dedication to BTC as a key financial asset. While the international community watches closely, Bukele’s government believes that Bitcoin adoption will bring economic transformation. The ongoing accumulation signals a long-term commitment, regardless of external pressures or financial constraints.
Read More: El Salvador’s Bitcoin Reserves Reach 6,000 BTC, Valued at $569M