El Salvador Adds 7 More Bitcoin to Reserves, Defying IMF Deal Terms

El Salvador has added seven more Bitcoin (BTC) to its national reserve over the past week, bringing its total holdings to 6,173 BTC, currently valued at over $637 million. The accumulation comes in open defiance of a financial agreement with the International Monetary Fund (IMF), which explicitly urged the country to cease using public funds for cryptocurrency purchases.

Data from the El Salvador Bitcoin Office confirms the continued acquisition trend, signaling that the government is maintaining its Bitcoin investment strategy months after signing the IMF loan deal. This makes El Salvador one of the few nations globally conducting open market Bitcoin purchases as part of its economic policy.

El Salvador’s Bitcoin holdings and acquisitions since March 13. Source: El Salvador Bitcoin Office

IMF Conditions and National Pushback

In December 2024, El Salvador entered into a $1.4 billion loan agreement with the IMF. As part of the deal, the government agreed to:

• Rescind the Bitcoin legal tender law, making Bitcoin usage optional.

• Refrain from using public funds to purchase additional BTC.

• Privatize the state-funded Chivo Wallet, which had seen limited adoption among citizens.

While lawmakers formally repealed the Bitcoin legal tender law in January 2025 with a 55-2 congressional vote, this move did not stop the government’s active Bitcoin acquisitions.

The IMF reiterated its demands in March 2025, issuing another request for the government to halt its Bitcoin purchases. However, President Nayib Bukele publicly rejected the appeal, doubling down on his administration's commitment to the cryptocurrency.

"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," Bukele declared in a post on X (formerly Twitter) on March 4.

A Model for Bitcoin-Backed Nations?

Despite ongoing IMF pressure, El Salvador’s continued Bitcoin accumulation is seen by some crypto industry leaders as a strategic move that could influence other countries considering digital assets for their sovereign reserves. By positioning itself as a pioneer in Bitcoin-based national finance, El Salvador hopes to leverage blockchain innovation for economic diversification and long-term growth.

The long-term implications of this strategy remain to be seen, but El Salvador’s unyielding approach suggests the country is betting big on Bitcoin’s future, even in the face of global financial resistance.