El Salvador Continues Bitcoin Accumulation Despite IMF Agreement
According to Cointelegraph, El Salvador has added 7 Bitcoin (BTC) to its national strategic reserve over the past week, bringing its total holdings to 6,173 BTC, valued at over $637 million. This acquisition continues despite a December 2024 loan agreement with the International Monetary Fund (IMF) that specifically required the Central American country to stop using public funds for Bitcoin purchases.
The country's Bitcoin Office has maintained a steady pace of acquisitions since signing the IMF deal, showing no indications of halting its cryptocurrency purchases. El Salvador remains one of the few nations actively purchasing Bitcoin through open market operations.
The Complex IMF Relationship
The $1.4 billion loan agreement signed with the IMF in December 2024 included several conditions aimed at limiting El Salvador's Bitcoin involvement. Reuters reports that the deal stipulated that El Salvador rescind its Bitcoin legal tender law, make Bitcoin payments voluntary, and refrain from using public funds to finance additional Bitcoin purchases.
In January 2025, El Salvador's Congress amended its Bitcoin law in a 55-2 vote, officially revoking Bitcoin's status as legal tender. However, this legislative change did not pause the country's Bitcoin acquisitions. When the IMF issued another request in March 2025 reiterating the terms of the agreement, President Nayib Bukele pushed back.
"No, it's not stopping," Bukele stated in a March post on social media. "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."
The Technical Compliance Question
Interestingly, the IMF appears to have found a way to accommodate El Salvador's continued Bitcoin acquisitions. Cointelegraph reported that Rodrigo Valdes, director of the Western Hemisphere Department at the IMF, stated that El Salvador continues to comply with its agreement despite the ongoing purchases.
This apparent contradiction might be explained by a legal technicality in how the purchases are structured. Anndy Lian, an intergovernmental blockchain adviser, suggested that "The IMF's 'flexible interpretation' suggests purchases may involve non-public sector entities or reclassified assets, maintaining technical compliance."
Bitcoin Holdings and Performance
El Salvador's Bitcoin investment strategy has shown positive results in recent months as cryptocurrency markets have rebounded. From an initial investment estimated at around $270 million, the country's Bitcoin holdings have now more than doubled in value.
According to data from the El Salvador Bitcoin Office, the country has accumulated Bitcoin through both direct purchases and mining operations. Since 2021, El Salvador has mined nearly 474 bitcoins using geothermal energy from the Tecapa volcano, contributing to its national holdings.
Global Implications and Future Outlook
El Salvador's persistence with its Bitcoin strategy comes at a time when cryptocurrency adoption is gaining momentum globally. Bitcoin Magazine notes that countries are increasingly considering Bitcoin as part of their financial reserves to strengthen economic sovereignty and hedge against inflation.
The concept of a Strategic Bitcoin Reserve has gained prominence in recent years, with El Salvador's move setting a global precedent for sovereign Bitcoin adoption. In March 2025, even the United States formalized its own Bitcoin holdings into a Strategic Bitcoin Reserve, utilizing assets acquired through legal forfeitures.
According to Security.org, 60% of Americans familiar with cryptocurrency believe that values will increase during President Trump's second term, with many experts projecting Bitcoin to reach as high as $150,000-$200,000 in 2025.
This evolving landscape presents both challenges and opportunities for traditional financial institutions. The IMF has consistently expressed concerns about cryptocurrencies potentially undermining monetary sovereignty and financial stability. In a recent policy paper, the IMF warned that widespread adoption of crypto assets could "reinforce dollarization forces in the economy" and affect the effectiveness of monetary policy.
Related Reading on BTC Peers
For those interested in understanding how countries are navigating Bitcoin adoption and regulatory frameworks, the Global Bitcoin Policy Index (GBPI) provides essential insights. This comprehensive resource tracks regulatory approaches worldwide, offering detailed analysis of how different jurisdictions are addressing cryptocurrency integration into their financial systems. The index serves as a valuable tool for investors, policymakers, and researchers seeking to understand the evolving landscape of global Bitcoin adoption and regulation.
