El Salvador’s President Nayib Bukele has reaffirmed that the country will not stop acquiring Bitcoin (BTC), despite restrictions set by the International Monetary Fund (IMF) as part of a $3.5 billion financial agreement.
Defying IMF Restrictions
The IMF’s deal with El Salvador includes measures to limit the government’s Bitcoin purchases, including a ban on new acquisitions. However, Bukele remains defiant, insisting that the country will continue to buy Bitcoin. In a statement posted on social media, he said, “This all stops in April. stops in June. stops in December. No, it’s not stopping,” emphasizing his administration’s commitment to its Bitcoin strategy.
After the IMF’s warning, El Salvador added 19 BTC to its reserves in the past week, bringing the total to 6,101 BTC, valued at around $530 million. The government has maintained a routine of purchasing one Bitcoin per day since November 2022, underscoring its ongoing support for cryptocurrency despite IMF pressures.
IMF’s Bitcoin Restrictions
As part of the IMF’s conditions, El Salvador is prohibited from “voluntary accumulation of Bitcoin” by the public sector. Additional stipulations require the publication of wallet addresses for Bitcoin transactions and audited financial statements for crypto-related government entities. Furthermore, the Fidebitcoin trust fund, established to support Bitcoin adoption, must be liquidated by July 2025.
El Salvador is also expected to withdraw from the Chivo Wallet system, its official Bitcoin payment platform, and amend its Bitcoin Law to make Bitcoin acceptance voluntary rather than mandatory for businesses. This marks a significant shift from the country’s original stance, which made Bitcoin legal tender in 2021.
Support for Bitcoin and Technology Investment
Despite the IMF’s restrictions, El Salvador is focusing on expanding its technological landscape. Bukele recently held discussions with prominent investors such as Ben Horowitz and Marc Andreessen regarding potential AI investments. The government is exploring tax incentives and regulatory frameworks to attract tech companies, with an aim to make El Salvador a hub for innovation in Latin America.
Michael Saylor, co-founder of MicroStrategy and a Bitcoin advocate, showed support for El Salvador’s Bitcoin strategy by commenting on Bukele’s social media post, stating, “Bitcoin adoption is unstoppable.”
While navigating IMF pressure, El Salvador’s leadership remains determined to continue its Bitcoin purchases and diversify its economic development through new technology investments.
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