El Salvador’s crypto narrative continues to unfold with a bold twist, as the nation persists in augmenting its Bitcoin reserves despite a delicate balancing act with the International Monetary Fund (IMF). Over the past week, El Salvador has added seven more Bitcoin to its trove, now totaling 6,173 BTC—an investment valued at nearly $637 million. This move, reported by the country’s Bitcoin Office, highlights a persistent defiance in the face of international financial scrutiny.
Defying the IMF: A Calculated Risk?
In December 2024, El Salvador secured a hefty $1.4 billion loan from the IMF, which came with strings attached—chief among them, a mandate to halt the use of public funds for Bitcoin purchases. However, the Salvadoran government seems unfazed by such stipulations. President Nayib Bukele has been vocal in his resistance, famously stating, “No, it’s not stopping,” in a March 2025 social media post that underscored his commitment to Bitcoin, regardless of external pressures.
This steadfast approach has intrigued—and puzzled—many within the cryptocurrency sphere. “El Salvador is rewriting the playbook for national Bitcoin adoption,” remarked a crypto analyst from a leading blockchain think tank. “While the IMF’s position is clear, Bukele’s strategy appears to hinge on long-term gains that could potentially offset short-term tensions.”
The Global Stage: A Blueprint for Others?
El Salvador’s actions could serve as a harbinger for other nations contemplating crypto reserves. As one of the few countries actively purchasing Bitcoin on the open market, its strategy could become a model for others eyeing digital currencies as a hedge against economic instability. Industry executives believe that El Salvador’s experience might embolden similar initiatives elsewhere, particularly in regions looking to bolster their financial sovereignty. This aligns with predictions that Bitcoin ETFs and government adoption could drive BTC to $1M by 2029, highlighting the potential for widespread institutional and national adoption.
Yet, the journey is not without its hurdles. Earlier this year, in January 2025, the nation repealed its Bitcoin legal tender law in a decisive 55-2 Congressional vote. Although this legislative change appeared to be a concession to the IMF, it did not deter the country’s ongoing Bitcoin acquisitions. The IMF’s subsequent request in March 2025 for El Salvador to cease its Bitcoin purchases further illustrates the friction between national policy and international expectations.
Historical Context and Market Implications
El Salvador’s Bitcoin saga began in earnest back in 2021 when it became the first country to adopt Bitcoin as legal tender. Since then, the nation’s crypto journey has been closely watched by investors and governments alike. The country’s move to privatize the Chivo Wallet—a digital wallet initially funded by public resources but underutilized—marks another chapter in its evolving crypto story.
Observers are keenly watching how global markets react to El Salvador’s latest moves. “The country is essentially testing the waters for Bitcoin as a sovereign reserve asset,” noted a prominent blockchain researcher. “It’s a bold move that could either set a precedent or serve as a cautionary tale.” This echoes the strategic moves by companies like Metaplanet, which plans to raise $250M for its Bitcoin strategy in the US, indicating a broader trend of significant investments in Bitcoin.
Looking Ahead: Challenges and Opportunities
As El Salvador continues to stack Bitcoin, questions linger about the sustainability of this strategy. The IMF’s concerns about financial stability and fiscal responsibility are not without merit. Yet, Bukele’s administration seems determined to chart its own course, banking on Bitcoin’s potential to deliver economic benefits in the long run.
What lies ahead for El Salvador in this high-stakes crypto gamble? The outcome remains uncertain, and the world watches with bated breath. As with all pioneering endeavors, the risks are substantial, but so too are the opportunities. Will El Salvador’s audacious Bitcoin strategy pay off? Only time will tell. For now, the tiny Central American nation remains a focal point in the global conversation on cryptocurrency adoption and regulation.
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This article is based on: El Salvador stacks 7 Bitcoin in last week, despite IMF deal
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
