El Salvador’s President Nayib Bukele announced that the country will persist with Bitcoin purchases amid IMF calls to stop, highlighting its ongoing commitment to cryptocurrencies despite financial pressures. The nation currently holds over 6,100 Bitcoin valued at $534.5 million, remaining the sixth-largest holder globally and demonstrating defiance against the IMF’s requests regarding Bitcoin mining and public sector debt management.
El Salvador’s President Nayib Bukele has announced that his government will continue purchasing Bitcoin despite the International Monetary Fund’s (IMF) recent request to halt such activities. The IMF made its request on March 3 as part of an extended arrangement under a $1.4 billion fund designed to stabilize the country’s economy. Bukele publicly stated on March 4 that the country has no intention of complying with this directive, indicating that past pressures have not altered its Bitcoin strategy.
In response to the IMF’s memorandum, which also urged El Salvador to cease Bitcoin mining and limit the issuance of public sector debt in Bitcoin, Bukele emphasized the continuity of Bitcoin acquisition. As part of its national strategy, El Salvador has maintained a routine of purchasing a minimum of one Bitcoin daily. Despite Bukele’s defiance regarding Bitcoin buying, it remains uncertain whether the government will adhere to other IMF requests.
El Salvador had initially entered a funding agreement with the IMF in December 2024, which included stipulations to reduce Bitcoin-related initiatives. These measures involved making Bitcoin payments voluntary for businesses and requiring tax payments in U.S. dollars. The government currently holds 6,101 Bitcoin, with a total value of approximately $534.5 million, making it the sixth-largest holder worldwide, trailing behind the US, China, the UK, Ukraine, and Bhutan.
The nation has embraced Bitcoin since recognizing it as legal tender in September 2021, becoming the first country to do so. However, the legal status of Bitcoin was further refined in January 2022. This legislation granted private sector merchants the choice to accept Bitcoin, making its acceptance non-mandatory. The ongoing developments in El Salvador’s approach to Bitcoin highlight the complex relationship between national policy and international financial institutions like the IMF.
In summary, El Salvador, under President Bukele’s leadership, remains committed to its Bitcoin strategy despite IMF pressure to halt Bitcoin purchases and mining. The country has continued to buy Bitcoin and holds over $534 million worth as it navigates its economic narrative. While the Bitcoin initiative faces scrutiny from the IMF, Bukele’s firm stance demonstrates an unwavering commitment to this digital asset.
Original Source: cointelegraph.com
