Bukele Defies IMF, Vows El Salvador Will Keep Buying Bitcoin
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President Nayib Bukele of El Salvador reaffirmed the country’s resolve to purchase Bitcoin despite fresh scrutiny from the International Monetary Fund (IMF). In line with its treasury strategy, the government intends to continue adding Bitcoin to its reserves despite the IMF’s admonishment toward Bitcoin purchases by public sectors.
El Salvador Rejects IMF Request to Stop Bitcoin Purchases
On March 3, the IMF issued a request as part of a proposed $1.4 billion fund arrangement, calling for El Salvador to stop its voluntary accumulation of Bitcoin. The following day, Bukele dismissed the request in a post on X (formerly Twitter).
“No, it’s not stopping,” Bukele stated. He continued, “It didn’t stop when we faced global isolation and many ‘bitcoiners’ walked away, and it won’t stop now or in the future.”
El Salvador has been purchasing at least one Bitcoin per day since 2022, a strategy Bukele has repeatedly defended. Data from the National Bitcoin Office of El Salvador indicates that the country currently holds 6,101 Bitcoin, valued at approximately $534.5 million.
IMF Calls for Limits on Bitcoin-Related Activities
In addition to urging an end to Bitcoin purchases, the IMF’s March 3 memorandum included other recommendations related to El Salvador’s Bitcoin policies. It called for the country to stop Bitcoin mining activities and restrict the issuance of debt or tokenized financial instruments linked to Bitcoin.
The document classified these restrictions as “continuous quantitative performance criteria,” meaning they would be mandatory if the funding arrangement is finalized. It remains unclear whether El Salvador will comply with these additional requests.
Samson Mow, CEO of Bitcoin technology firm JAN3, criticized the IMF’s approach on X, stating, “I’d rather have heard this from the Bukele administration than the IMF.”
El Salvador’s Bitcoin Strategy Under IMF Scrutiny
El Salvador became the first country to adopt Bitcoin as legal tender in September 2021. In January 2024, a new law made its acceptance optional for businesses.
That deal, $1.4 billion from the IMF, was granted to the country in December 2024. In the agreement, El Salvador said it would slow down some of its Bitcoin initiatives, making them voluntary and maintaining payment in U.S. dollars for taxes.
El Salvador Expands Tech and Crypto Partnerships
As El Salvador persists in its Bitcoin acquisitions, it has been cultivating collaborations with technology and crypto companies. On March 2, Bukele conversed with Andreessen Horowitz (a16z) co-founders Marc Andreessen and Ben Horowitz regarding investments in artificial intelligence and possible technology advancements in the nation.
In January, stablecoin provider Tether set up operations in El Salvador, and two weeks prior, Bukele talked with MicroStrategy Chairman Michael Saylor about Bitcoin adoption.
Despite outside pressures, El Salvador stays dedicated to its Bitcoin approach while working to enhance its role in the global tech and cryptocurrency sectors.
The post Bukele Defies IMF, Vows El Salvador Will Keep Buying Bitcoin appeared first on Coinfomania.
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