Bitcoins
- El Salvador defied IMF conditions by purchasing another Bitcoin, increasing its total holdings to 6,101 BTC, now valued at around US$510M.
- President Nayib Bukele reaffirmed the country’s commitment to Bitcoin, dismissing IMF pressure despite a US$1.4B loan agreement that includes halting BTC purchases.
- The IMF argues Bitcoin adoption in El Salvador remains minimal, with limited public trust, low circulation and no financial sector exposure, mitigating economic risks.
In direct contradiction to the IMF’s stipulations, El Salvador’s Bitcoin Office recently purchased an additional Bitcoin (BTC), increasing the country’s total holdings to 6,101 BTC, now valued at approximately US$510M (AU$804M).
El Salvador’s President Nayib Bukele shared the news on X, reaffirming his pro-Bitcoin stance, reassuring that pressures from the International Monetary Fund (IMF) will not deter the country’s Bitcoin activities, even despite a recent loan agreement that included strict measures that included halting BTC purchases.
‘This all stops in April. This all stops in June. This all stops in December.’ No, it’s not stopping. If it didn’t stop when the world ostracized us and most ‘bitcoiners’ abandoned us, it won’t stop now, and it won’t stop in the future.
El Salvador’s President Nayib Bukele
Bukele’s statement comes as the IMF recently launched a report on March 5, highlighting a set of conditions for the US$1.4B (AU$2.21B).
The IMF is requesting El Salvador’s government to halt all Bitcoin-related activities, including purchases. It also seeks the liquidation of the Fidebitcoin trust by July 2025 and the discontinuity of its state-run Chivo wallet, which has already failed in the country, given that neither regular citizens nor businesses use it. That, and disclose all public Bitcoin wallet addresses.
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IMF: Salvadorians Have Limited Trust in Bitcoin
The IMF highlights that cryptocurrencies and blockchain can enhance payments worldwide, yet crypto adoption could bring “macroeconomic risks” to financial stability.
In that sense, the reason why El Salvador has not collapsed economically is because Salvadorians don’t really care about or use Bitcoin, having “limited trust in the technology”:
In El Salvador, monetary and financial stability risks have been contained due to Bitcoin’s limited circulation, in a context where the US dollar can also be freely used. The use of Bitcoin as means of payment has been minimal, reflecting Bitcoin’s high price volatility and limited trust in the technology.
IMF
The report adds that the financial sector in the country has no exposure, and companies do not pay their taxes in Bitcoin.
Meanwhile, the financial sector has no exposure to Bitcoin, and payment of taxes in Bitcoin, which will be prohibited following legal reforms, have been insignificant
IMF
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José Oramas Read More