El Salvador Doubles Down on Bitcoin Bet—Snubs IMF With 8 BTC Purchase

Nayib Bukele’s government just flipped the bird to traditional finance—again. El Salvador scooped up another 8 Bitcoin this week, pushing its reserves higher despite the IMF’s repeated warnings about ’risky’ sovereign crypto exposure.

Why it matters: The move defies the country’s 2023 agreement with the IMF to limit Bitcoin purchases. Meanwhile, Wall Street still can’t decide if this is visionary or fiscal arson.

Bottom line: While hedge funds debate tokenized Treasuries, El Salvador keeps stacking sats—proving crypto’s most controversial national experiment isn’t backing down. Bonus burn: At least they’re not paying 2-and-20 for this ’alpha.’

IMF pressures El Salvador to restrict Bitcoin

In December 2024, El Salvador signed a $1.4 billion loan deal with the International Monetary Fund (IMF), whose public policy aims to stabilize the economy, encourage foreign investment, and reorganize national debt. But the offer was not without strings.

The country agreed to halt any voluntary public sector accumulation of Bitcoin as part of a technical memorandum of understanding. This included activities such as purchasing and mining BTC. However, the agreement clarified that Bitcoin obtained through forfeiture, seizure, custody, or similar legal actions against individuals or companies WOULD be exempt from this restriction.

The memorandum of understanding further pointed out that the public sector included all hot and cold wallets under the governance of any government-owned entity. Some of the entities listed included the Chivo Wallet, La Agencia Administradora de Fondos Bitcoin, Comision Ejecutiva Hidroelectrica del Rio Lempa, and Oficina Nacional del Bitcoin.

El Salvador’s lawmakers responded in January 2025 with a 55 to 2 vote to repeal the Bitcoin legal tender law. The law was later reversed; Bitcoin was still legal in the country, but it was no longer compulsory to use in transactions.

Easing these strict regulations did not mean that the government stopped believing in the wonders of crypto. Bitcoin purchases continued, and by March 2025, the IMF reiterated its advice for El Salvador to stop buying the digital asset. But President Nayib Bukele resisted, rejecting the IMF’s request.

This defiance has frightened international economists and investors. El Salvador is opening itself to gratuitous financial risk, many believe. Even the IMF has cautioned that continued Bitcoin purchases with public money could make the country’s fiscal outlook more volatile.

Bukele expands Bitcoin reserves despite IMF deal

El Salvador’s Bitcoin buying spree is not showing any signs of slowing. The Central American nation remains among the rare few actively acquiring Bitcoin through open market operations. Crypto industry leaders believe its national Bitcoin treasury approach could become a model for other countries exploring the idea of strategic Bitcoin reserves.

El Salvador is the only country in the world taking public money in real-time and daily to generate purchases in Bitcoin. Critics call the MOVE risky, while its supporters say it is visionary.

Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites