El Salvador Stands Firm on Bitcoin Strategy Despite IMF Restrictions

El Salvador’s President, Nayib Bukele, has boldly reaffirmed his country's unwavering commitment to its Bitcoin initiative despite external pressure from the International Monetary Fund (IMF).

The IMF, in a $3.5 billion financing agreement, imposed restrictions on Bitcoin purchases, aiming to limit the government’s involvement with the cryptocurrency. However, Bukele has made it clear that the government will continue to acquire Bitcoin as part of its long-term strategy, dismissing any attempts to stop the purchases.

In recent weeks, El Salvador has continued adding to its Bitcoin reserves, now holding over 6,100 BTC, worth roughly $530 million. This acquisition strategy has been ongoing since November 2022, and even with the IMF deal in place, the government remains undeterred in its stance.

The IMF deal also includes a set of regulatory measures, such as requiring the publication of Bitcoin wallet addresses and audited statements for crypto-related government entities. El Salvador must also liquidate the Fidebitcoin trust fund by mid-2025 and scale back its involvement with the Chivo Wallet platform.

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While Bitcoin remains central to El Salvador’s financial vision, the government is also looking beyond crypto. Bukele is exploring new economic avenues, including discussions with major investors about artificial intelligence (AI), aiming to position the country as a hub for innovation in Latin America. Despite IMF conditions, El Salvador is charting a path focused on both cryptocurrency adoption and broader technological development.

Kosta Gushterov