El Salvador Doubles Down on Bitcoin Bet—IMF’s Warnings Be Damned
Nayib Bukele’s government just flipped the bird to traditional finance—again. While the IMF frets about ’macroeconomic risks,’ El Salvador quietly scooped up another $50M in Bitcoin this week. That’s chump change for Wall Street, but a middle finger to the old guard.
Key moves: Treasury now holds 5,690 BTC (~$400M), bought via dollar-cost averaging since 2021. No panic-selling here—just steady accumulation through every market cycle.
The twist? This comes as the IMF dangles a $1.3B loan... with strings attached to ditch crypto. Bukele’s response? A tweet with laser eyes and zero apologies. Classic.
Meanwhile, pension funds still can’t decide if crypto is ’too volatile’ while hoarding Argentine bonds. Priorities.
$96,525 as a reserve asset is still being supported by both the government and the private sector. The strategic approach is being coordinated with other structural reforms.
ContentsOfficial StatementsIMF’s Opinions
Official Statements
Maria Luisa Hayem emphasized the importance of the ongoing digital currency acquisition project. She stated, “Under President Bukele’s leadership, the strategy of asset accumulation is a significant project for both the government and the private sector.”
IMF’s Opinions
Officials affirmed that the country’s cryptocurrency purchases are being executed in compliance with the performance criteria outlined in the credit agreement. The acquisition strategy continues within the framework of the IMF-mandated reforms, without breaching the established restrictions.
Rodrigo Valdes, director of the IMF’s Western Hemisphere Department, highlighted that El Salvador is adhering to its pledge to control cryptocurrency purchases within the broader context of fiscal discipline. He underscored the significance of progress made during the reform process.
Despite El Salvador’s commitment to strengthening its financial statements and reducing cryptocurrency purchases in exchange for $1.4 billion in IMF funding last year, a noticeable cut in purchases has not been observed. Evaluations suggest that these purchases comply with the credit terms.
Authorities claim that continuing cryptocurrency acquisitions is part of a holistic strategy that includes the country’s structural economic reforms, governance transparency, and fiscal discipline. These ongoing reform efforts have reportedly led to significant advancements in financial and governance domains.
The situation in El Salvador is considered part of a comprehensive reform package assessed against the IMF’s performance criteria. While enhancing the nation’s reserve assets, the continuous purchase of BTC is also viewed as a strategic move closely monitored by the international financial community.
In summary, El Salvador’s digital currency strategy proceeds in parallel with the nation’s financial reforms, adhering to the IMF’s performance criteria.
You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.