El Salvador’s Nayib Bukele Confirms Bitcoin Buying Continuation Despite IMF Warning
Highlights
- El Salvador defies IMF, continues BTC buys, holds over 6,100 BTC valued at $530M
- IMF sets BTC restrictions in $3.5B deal; El Salvador buys 19 BTC post-agreement.
- Will El Salvador liquidate Fidebitcoin by July 2025 and shifts from mandatory Bitcoin law?
El Salvador’s President Nayib Bukele has stated that the country will continue buying Bitcoin (BTC) despite conditions set by the International Monetary Fund (IMF) in a recent financial agreement.
The IMF had included restrictions on further government Bitcoin purchases as part of a $3.5 billion financing deal, but Bukele made it clear that his administration has no plans to stop accumulating the cryptocurrency.
Bukele Rejects IMF’s Bitcoin Restrictions
The IMF’s agreement with El Salvador includes specific measures to limit government involvement with Bitcoin, including a ban on new acquisitions. However, El Salvador’s President Nayib Bukele dismissed these restrictions, posting on social media that Bitcoin purchases would continue.
“This all stops in April. stops in June. This all stops in December. No, it’s not stopping,” Bukele wrote on X. He also added, “Proof of work > proof of whining,” suggesting that his government remains committed to its Bitcoin strategy despite external pressure.
The IMF’s financing deal, worth $3.5 billion, includes measures aimed at regulating the country’s Bitcoin use. One clause states that the public sector is prohibited from “voluntary accumulation of Bitcoin.” However, shortly after the IMF published this information, El Salvador announced new Bitcoin purchases, adding 19 BTC over the past week and an additional token the following day.
El Salvador Continues Bitcoin Accumulation
Despite the IMF’s conditions, El Salvador has continued to expand its Bitcoin reserves. Data indicates that the government now holds approximately 6,101 BTC, valued at around $530 million at current market prices.
El Salvador has been purchasing one Bitcoin daily since November 2022. The latest acquisition follows multiple previous purchases made in January and February, even after the IMF agreement was finalized. The government’s actions suggest a strong commitment to its Bitcoin strategy regardless of external regulations.
Michael Saylor, co-founder of MicroStrategy and a strong advocate for Bitcoin, also weighed in on the situation. Replying President Nayib Bukele’s post, Saylor wrote, “Bitcoin adoption is unstoppable,” showing his support for El Salvador’s ongoing Bitcoin strategy.
IMF’s New Rules on Bitcoin Transactions
The IMF’s agreement also includes broader regulatory measures related to Bitcoin. As part of the deal, the government is required to publish all wallet addresses used for Bitcoin transactions. Additionally, audited financial statements must be released for crypto-related government entities.
Another key requirement is the liquidation of the Fidebitcoin trust fund by July 2025, which was originally established to support Bitcoin adoption in El Salvador. The government is also expected to withdraw from direct involvement in the Chivo Wallet system, the country’s official Bitcoin payment platform.
Further amendments to the Bitcoin Law are also being introduced. These changes aim to make Bitcoin acceptance voluntary rather than mandatory for businesses. This marks a shift from El Salvador’s initial stance when it became the first country to adopt Bitcoin as legal tender in 2021.
El Salvador’s Broader Tech and Economic Strategy
While Bitcoin remains a key part of their financial strategy, the country is also expanding its focus on technology and economic development. Bukele recently held discussions with prominent investors, including Ben Horowitz and Marc Andreessen of a16z, regarding artificial intelligence (AI) investments.
The government is considering tax incentives and regulatory frameworks to attract tech companies to the country following US footsteps under President Donald Trump who are hosting a crypto summit to ease the growth of the crypto sector. Consequently, Bukele’s administration aims to position El Salvador as a hub for innovation in Latin America while maintaining its Bitcoin strategy.
Despite pressure from the IMF, El Salvador’s leadership appears determined to continue its Bitcoin acquisitions while also seeking economic growth through new technology investments.
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