El Salvador has continued its aggressive Bitcoin buying strategy despite pressure from the International Monetary Fund (IMF) to halt purchases, increasing its holdings to 6,111 BTC.
El Salvador Defies IMF, Continues Bitcoin Accumulation
The Central American country added 6 BTC to its reserves on Sunday, bringing its total holdings to 6,111.18 BTC, worth about $504 million at current market prices. That’s up from 6,072 BTC on Feb. 9, according to the country’s Bitcoin Office.
IMF Agreement and Rising Tensions
El Salvador reached a $1.4 billion loan agreement with the IMF in December, with the total financial package expected to exceed $3.5 billion. As part of the deal, the country agreed to reduce its Bitcoin engagement in exchange for financing.
- In January, the Salvadoran Legislative Assembly passed a bill to comply with IMF requirements tied to the loan.
- On March 3, the IMF released a new report reinforcing the expectation that El Salvador will limit government involvement in Bitcoin-related activities.
Bukele Remains Firm on Bitcoin Strategy
Despite these agreements, President Nayib Bukele has made it clear that El Salvador will not stop accumulating Bitcoin.
- In a March 5 post on X (formerly Twitter), Bukele countered speculation that the country would abandon its Bitcoin-first approach.
- “No, it won’t stop,” Bukele wrote. “If it didn’t stop when the world shut us out and most ‘bitcoinists’ abandoned us, it won’t stop now and it won’t stop in the future.”
El Salvador became the first country to accept Bitcoin as legal tender in September 2021, a move that initially drew criticism from global financial institutions including the IMF and the World Bank. The government has since launched initiatives such as Bitcoin-backed bonds and a volcanic-powered Bitcoin mining operation.
Despite concerns from the IMF and credit rating agencies, the Bukele administration continues to frame Bitcoin adoption as a long-term strategy for financial independence and economic growth.
*This is not investment advice.
