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- El Salvador purchases 5 more Bitcoins, defying IMF restrictions on public sector BTC accumulation, despite a $1.4B financial deal.
- President Bukele rejects claims of halting Bitcoin purchases, asserting that BTC accumulation will continue without interruption.
- El Salvador’s Bitcoin reserve now totals 6,101.15 BTC (~$530M), showcasing its ongoing commitment to crypto adoption.
El Salvador continues to make waves in the global crypto community, again making headlines with its recent purchase of 5 additional Bitcoins. This move comes despite the country’s agreement with the International Monetary Fund (IMF), which explicitly prohibits the public sector’s voluntary accumulation of Bitcoin (BTC).
El Salvador signed a deal with the IMF earlier this year, securing a $1.4 billion financial assistance package. A key part of this agreement stipulates that the country must halt its voluntary BTC purchases. It also restricts the issuance of debt or tokenized instruments indexed to BTC. However, today’s purchase further underscores the country’s disregard for these stipulations, signaling a defiance of IMF directives.
President Nayib Bukele, a staunch advocate for Bitcoin, made it clear that El Salvador has no intentions of slowing down its BTC acquisitions. In a bold statement shared on X (formerly Twitter), Bukele dismissed claims that the country would cease accumulating BTC. “This all stops in April. This all stops in June. This all stops in December. No, it’s not stopping,” he declared, putting to rest any speculation of halting BTC purchases.
El Salvador Defies IMF with $530M Bitcoin Reserve
El Salvador’s Bitcoin strategy dates back to 2021, when it officially became the first country to recognize Bitcoin as a legal tender. Since then, the government has quietly amassed a significant BTC reserve. Its holdings now total 6,101.15 BTC, worth roughly $530 million at current market prices.
Despite international financial institutions’ resistance to BTC adoption, including the IMF’s initial opposition. The institution softened its stance in October 2023. Amendments to economic policies allowed El Salvador greater flexibility in its Bitcoin approach. Yet, the government remains undeterred by the IMF’s attempts to curb its ambitions for BTC.
In the face of mounting pressure, including the recent IMF disclosures regarding its $3.5 billion deal with El Salvador, the nation continues to build its Bitcoin stack. Just hours after the IMF’s reiteration of restrictions, El Salvador revealed that it had acquired 19 BTC in the past week alone. This move further solidifies its long-term commitment to the digital asset.
Prominent Bitcoin advocates like Samson Mow have voiced their support for El Salvador’s BTC strategy. Mow, who has long championed the country’s approach, initially speculated that BTC purchases would cease within months. However, he soon acknowledged El Salvador’s persistence in accumulating BTC.
El Salvador’s defiance of IMF-imposed restrictions on Bitcoin is a bold statement about the country’s vision for economic transformation through cryptocurrency. Despite external pressures, the government remains steadfast in its commitment to integrating Bitcoin into the nation’s economy. It reinforces that Bitcoin adoption is part of a long-term strategy
The crypto world watches closely as El Salvador accumulates Bitcoin, wondering if the country will stay the course despite the potential risks posed by IMF mandates and market fluctuations.
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