El Salvador Buys More Bitcoin, Defying IMF Restrictions

El Salvador Sticks to Bitcoin Purchases Despite IMF Deal

El Salvador has not slowed down its Bitcoin acquisitions, even after reaching an agreement with the International Monetary Fund (IMF) to scale back its cryptocurrency purchases. The Central American nation recently added another 6 BTC to its holdings, bringing its total to 6,111.18 BTC, valued at approximately $504 million based on current market prices. This marks a slight increase from 6,072 BTC as of February 9, according to the country’s Bitcoin Office.

IMF Loan and Conditions

In December 2023, El Salvador secured a $1.4 billion loan from the IMF, part of a larger financial package expected to exceed $3.5 billion. As part of the deal, El Salvador agreed to limit its involvement in Bitcoin-related economic activities. In January, the Legislative Assembly approved a bill aimed at complying with the IMF’s stipulations. On March 3, the IMF reiterated these requirements in a document outlining the conditions for its extended financial support.

The IMF’s Nigel Clarke emphasized that the program commitments would restrict government activities related to Bitcoin, including Bitcoin purchases and transactions. He stated, “Going forward, program commitments will confine government engagement in Bitcoin-related economic activities, as well as government transactions in and purchases of Bitcoin.”

El Salvador’s Commitment to Bitcoin

Despite these agreements, El Salvador’s strategy to accumulate Bitcoin remains unwavering. President Nayib Bukele reaffirmed this commitment in a post on X (formerly Twitter) on March 5. He declared, “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.”

El Salvador’s Bitcoin strategy continues to be a key component of its economic plan, even as it navigates the challenges of international financial agreements.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.