El Salvador Defies IMF With $1.4B Loan Terms – Doubles Down on Bitcoin Purchases

El Salvador just flipped the bird to traditional finance—again. The IMF dangled a $1.4 billion loan, but President Bukele’s government kept stacking sats like a cypherpunk with a death wish.

No brakes on Bitcoin adoption

While bureaucrats clutched their pearls over ‘currency risk,’ El Salvador bought the dip. Again. Because when your treasury holds crypto, ‘compliance’ is just a suggestion.

The ultimate HODL strategy

Forget dollar reserves—this nation’s playing 4D chess with a Bitcoin standard. The IMF can keep its austerity measures; Salvadorans are too busy mining… political will.

Closing thought: Maybe the ‘lender of last resort’ should’ve bought BTC at $20k instead of printing SDRs.

TLDR

• El Salvador continues to purchase Bitcoin daily even after securing a $1.4 billion loan from the IMF.
• The country’s treasury wallet has grown to 6,209 Bitcoin with 240 BTC added since December 2024.
• The IMF loan agreement required El Salvador to halt Bitcoin accumulation through official fiscal channels.
• The government remains technically compliant by using a flexible interpretation of the agreement.
• Bitcoin purchases are managed outside the core fiscal sector to avoid breaching IMF loan conditions.

El Salvador maintains its Bitcoin buying strategy despite conditions tied to a $1.4 billion loan agreement with the IMF. The government resumed accumulation shortly after signing the deal, purchasing 240 Bitcoin since December 2024. This approach signals a continued preference for Bitcoin alongside international financial support.

El Salvador Continues Bitcoin Buys Post-IMF

El Salvador’s treasury wallet now holds 6,209 Bitcoin, reflecting ongoing acquisitions following the IMF loan announcement in December 2024. The government introduced a daily purchase plan in 2022, and it has continued under current economic policy. This accumulation includes one bitcoin bought each day since December 19, 2024.

Despite the IMF’s stated requirements, El Salvador’s purchases appear to sidestep direct violations through technical interpretations. The Bitcoin Office records each transaction, providing transparency and allowing tracking of government-held assets. Officials manage the operation within limits defined by the IMF agreement’s framework.

The IMF’s terms reportedly demanded an end to Bitcoin’s legal tender status and a halt to official accumulation. However, statements from IMF representatives suggest a distinction between fiscal sector holdings and broader state-affiliated activities. This allows El Salvador to continue purchases without breaching Core conditions of the loan agreement.

Flexible Framework Allows Strategic Continuation

International observers note that El Salvador may classify Bitcoin acquisitions under non-public entities or shift accounting methods. These adjustments allow continued involvement in Bitcoin while remaining technically aligned with IMF rules. The flexible interpretation supports ongoing accumulation without directly affecting fiscal stability metrics.

President Nayib Bukele’s administration has defended the plan as a sovereign financial strategy. The country’s Bitcoin strategy has not been directly funded through the IMF loan, maintaining a boundary between funding sources. El Salvador also avoids using these holdings in national budget planning or public expenditures.

IMF officials acknowledge technical compliance, despite El Salvador’s open Bitcoin purchases since the agreement. The government retains control over the treasury wallet, but operational oversight remains separate from CORE fiscal institutions. This structure aligns with the agreement’s language while preserving policy continuity.

Traditional Remittances Surpass Bitcoin Once Again

In contrast, Bitcoin-related remittances to El Salvador dropped significantly in the first quarter of 2025. Central Reserve Bank data shows a 44.5% decrease compared to the same period in 2024. cryptocurrency remittance payments totaled only $16 million this year.

These payments accounted for just 0.52% of total remittances, down from 1.08% last year. The decline represents a $12.8 million shortfall over 12 months. Traditional money transfer methods continue to dominate remittance flows into the country.