El Salvador's Bitcoin Strategy Remains Firm Amid IMF Pressure

El Salvador's President, Nayib Bukele, has reaffirmed the country's commitment to purchasing Bitcoin every day, despite recent pressure from the International Monetary Fund (IMF) urging the government to halt its Bitcoin accumulation.

In a statement posted on social media on March 4, Bukele declared that El Salvador would continue its daily Bitcoin purchases, rejecting the IMF's latest call to stop. "No, it’s not stopping," Bukele wrote. "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."

The IMF’s call on March 3 came as part of an extension request for a $1.4 billion fund facility, which includes conditions for El Salvador to cease its Bitcoin accumulation. The IMF’s memorandum also urged the country to end Bitcoin mining operations and refrain from issuing any public sector debt or tokenized instruments tied to Bitcoin, including those denominated or indexed in the cryptocurrency.

Despite the IMF's request, Bukele remains steadfast in his government's strategy to purchase at least one Bitcoin per day. This move aligns with El Salvador’s broader approach to build its Bitcoin reserves as part of its treasury management.

El Salvador, which made Bitcoin legal tender in September 2021, currently holds 6,101 Bitcoin, valued at approximately $534.5 million, based on current market prices. This makes the country the sixth-largest holder of Bitcoin in the world, behind the United States, China, the United Kingdom, Ukraine, and Bhutan, according to BitBo’s Bitcoin Treasuries data.

While Bukele confirmed that Bitcoin purchases would continue, it remains unclear whether El Salvador will comply with other IMF demands, such as limiting the country’s Bitcoin mining activities or adhering to restrictions on the issuance of Bitcoin-linked debt.

The IMF’s request follows a broader trend in El Salvador's dealings with international financial institutions. In December 2024, the country secured a $1.4 billion funding deal from the IMF, which required El Salvador to scale back certain Bitcoin-related initiatives. This included making Bitcoin payments voluntary and transitioning to US dollar-based tax payments.

As the country continues to navigate its unique Bitcoin experiment, Bukele’s administration is standing firm on its commitment to Bitcoin, signaling that the country’s Bitcoin strategy remains an essential part of its economic vision.