El Salvador Keeps Buying Bitcoin Despite IMF Deal Restrictions
President Bukele’s government adds to Bitcoin reserves even as IMF warns against further crypto accumulation tied to $1.4B loan agreement.
IMF to Release $120M to El Salvador—But With Conditions
The International Monetary Fund (IMF) has agreed to release $120 million to El Salvador following a review of its $1.4 billion loan program, but not without tightening oversight of the country’s Bitcoin policies.
In a statement on May 27, the IMF confirmed that the disbursement, which awaits executive board approval, is tied to El Salvador meeting previously agreed conditions. These include ending government involvement in Bitcoin acquisition and ceasing operations of the Chivo wallet—the country’s state-sponsored Bitcoin app—by the end of July.
“Efforts will continue to ensure that the total amount of Bitcoin held across all government-owned wallets remains unchanged,” the IMF declared.
Bukele’s Bitcoin Strategy Continues Undeterred
Despite the IMF’s directive, President Nayib Bukele appears unwilling to curb his administration’s crypto agenda.
Just hours after the IMF announcement, El Salvador’s Bitcoin Office announced a fresh purchase of Bitcoin. According to the country’s official Bitcoin tracker, the government has added 30 BTC in the last 30 days, bringing its national reserve to 6,190.18 BTC.
This move comes in direct contrast to the IMF’s repeated warnings. On March 3, the Fund reasserted that El Salvador should “not pursue other Bitcoin-related activities.”
Still, Bukele maintains his commitment to buying one Bitcoin per day as part of the country’s long-term Bitcoin treasury strategy.
$386 Million in Unrealized Bitcoin Profits
President Bukele recently revealed that the country’s Bitcoin holdings are now sitting on unrealized profits of $386 million, representing a 132% gain on its total crypto investment.
“We’re up 132%,” Bukele posted on X last week, asserting the strength of El Salvador’s bold Bitcoin strategy.
How El Salvador Might Stay Technically Compliant
Despite the surface-level defiance, analysts suggest that El Salvador could still meet the IMF’s performance criteria by shifting its Bitcoin purchasing strategy.
Rodrigo Valdes, director of the IMF’s Western Hemisphere Department, recently stated that El Salvador is currently in compliance with performance requirements. Meanwhile, blockchain adviser Anndy Lian suggested that the country might be using non-government entities to continue accumulating BTC—thus sidestepping direct violation of IMF terms.
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