The International Monetary Fund (IMF) has restated its commitment to preventing the purchase of Bitcoin by El Salvador. This follows as part of the $1.4 billion loan agreement with the Central American nation, along with a recent $120 million payment review conducted by the IMF.
IMF Says Stop, El Salvador says Buy
The Salvadoran public sector agreed to cease voluntary bitcoin accumulation, remove mandatory legal tender status, and stop issuing bitcoin-dominated debt under the terms of the IMF deal, which was finalized in December 2024. In a recent March check-in, the IMF reiterated the terms and requested that Bitcoin-related activities, along with mining, be put to an end.
However, El Salvador does not seem worried. Despite these restrictions, the government confirmed that they will purchase Bitcoin daily, adding around one Bitcoin per day and bringing their holdings to around 6,190 BTC (valued at around $678 million). Soon after the IMF’s $120 million disbursement was approved on May 27th, El Salvador confirmed it had added another 30 BTC in the previous month. Nayib Bukele on X states, “No it’s not stopping,” reminding people that the accumulation of Bitcoin remains central to his administration’s strategy. The president also noted that the country is sitting on an unrealized gain of $386 million, representing a 132% increase. This is similar to opinions expressed by other leaders, such as the Arizona governor, who recently called crypto an ‘Untested Investment’ while vetoing a Bitcoin reserve bill.
IMF’s Tactical Response
In response to El Salvador’s actions, the IMF states that it will “continue efforts to ensure that the total amount of Bitcoin held across all government wallets remains unchanged” and they intend to phase out involvement with El Salvador’s Chivo wallet by July. Rodrigo Valdes, the director of IMF Western Hemisphere, also stated in late April that El Salvador is still “technically compliant” with the agreement of added nuance to the enforcement narrative. These developments highlight a fragile balance, and the IMF is signaling disapproval while avoiding major conflict with a sovereign nation that is determined to maintain its Bitcoin policy. Further highlighted by companies like Metaplanet, who have registered a U.S. Treasury Arm to expand their Bitcoin reserves, showcasing the unique approach to crypto adoption. As crypto professional and researcher Anndy Lian put it, “Countries and companies alike are finding creative workarounds to accumulate Bitcoin without violating formal agreements.”
Sovereignt vs. Oversight
This standoff reflects the growing conflict between traditional financial governance and crypto-led innovation. El Salvador’s insistence on continuing Bitcoin purchases changed the IMF’s authority but also created a bigger question about how financial sovereignty should be balanced against the oversight of global institutions. Meanwhile, the IMF’s worrisome tone suggests it is trying to uphold lending rules without triggering a geopolitical rift.
My Perspective on the El Salvador–IMF Showdown
From my point of view, El Salvador’s stance is both bold and symbolic of the larger crypto movement’s core values: independence, decentralization, and long-term conviction. While I do understand the IMF’s caution, I think their attempts to control sovereign digital asset strategies will become more difficult as more nations adopt pro-crypto policies. Bukele’s approach is definitely high risk, but the results so far, especially the country’s significant Bitcoin gains, suggest that there is a method to the madness. Whether or not other nations decide to follow in El Salvador’s footsteps, this case could mark the start of a new era where national digital strategies challenge the traditional playbook set by global leaders.
Source
This article is based on: IMF Says ‘Efforts Will Continue’ to Ensure El Salvador Doesn’t Accumulate More BTC
IMF says El Salvador to make ‘efforts’ to stop Bitcoin buys with $120M payments deal
Further Reading
Deepen your understanding with these related articles:
- Metaplanet Issues $25M Bonds to Buy More Bitcoin
- Metaplanet to open US arm, plans to raise $250M for Bitcoin strategy
- Strategy Raising Another $21B to Buy Bitcoin, Posts Large Q1 Loss on BTC Price Decline
Nicholas Newman is a 19-year-old based in Westchester, NY. He began his college journey at Iona University in New Rochelle and is now a student at Fordham University’s Gabelli School of Business in the Bronx NY, majoring in Accounting and Finance. Nicholas has been actively involved in the crypto space since 2020, both on the investment side and in development, and continues to explore opportunities at the intersection of finance, technology, and digital assets.
