El Salvador Continues Bitcoin Purchases Despite IMF Pressure

El Salvador’s President Nayib Bukele has declared that the country will continue purchasing Bitcoin, defying a request from the International Monetary Fund to cease such activities. Bukele has expressed confidence in the nation’s commitment, emphasizing that El Salvador will acquire at least one Bitcoin daily despite external pressures. As of now, El Salvador possesses 6,101 Bitcoin, making it one of the leading nations in Bitcoin reserves globally.

President Nayib Bukele of El Salvador has asserted that his government will persist in purchasing Bitcoin, despite a recent appeal from the International Monetary Fund (IMF) urging the nation to cease its Bitcoin accumulation. On March 3, the IMF requested that El Salvador halt the voluntary accumulation of Bitcoin as part of an extended arrangement linked to its $1.4 billion fund facility. Bukele responded resolutely on March 4, stating, “No, it’s not stopping,” reinforcing his stance against IMF pressures.

Bukele emphasized that El Salvador’s commitment to Bitcoin would not waver, stating, “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.” On March 4, the country maintained its strategy of acquiring at least one Bitcoin daily, consistent with its treasury approach. The IMF memorandum also requested the termination of Bitcoin mining operations and the restriction of public sector debt issuance linked to Bitcoin.

While President Bukele affirmed El Salvador’s intention to continue accumulating Bitcoin, compliance with other IMF recommendations remains uncertain. The National Bitcoin Office of El Salvador has not provided a comment regarding these issues. Initially, in December 2024, El Salvador secured a $1.4 billion funding arrangement with the IMF, which required the country to curtail its Bitcoin initiatives, including making Bitcoin payments voluntary.

As of now, El Salvador holds 6,101 Bitcoin, valued at approximately $534.5 million, positioning it as the nation with the sixth-largest Bitcoin reserves globally, following the United States, China, the United Kingdom, Ukraine, and Bhutan. El Salvador began its Bitcoin acquisitions in September 2021, marking its emergence as the first country in the world to adopt Bitcoin as legal tender. However, the legal framework regarding Bitcoin was altered in January, allowing for voluntary acceptance of Bitcoin payments by private sector merchants.

In conclusion, El Salvador, under President Nayib Bukele’s leadership, is committed to continuing its Bitcoin acquisitions despite pressure from the International Monetary Fund. This ongoing strategy reflects the country’s broader approach to integrating cryptocurrency into its financial framework, even as it navigates the challenges posed by international financial institutions. The nation’s position as a pioneer in cryptocurrency adoption remains significant, despite the evolving regulatory landscape.

Original Source: cointelegraph.com