El Salvador’s President, Nayib Bukele, has reiterated his commitment to the nation’s Bitcoin acquisition strategy, stating that government purchases of the cryptocurrency will continue unabated, despite recent stipulations from the International Monetary Fund (IMF).
On March 3, 2025, El Salvador secured a $1.4 billion loan from the IMF under the Extended Fund Facility. However, a key condition attached to the loan was a directive to halt the government’s purchase of Bitcoin. The IMF’s official memorandum emphasized: “No voluntary accumulation of BTC by the public sector in El Salvador.” In addition to this, the IMF cautioned against the issuance of debt or any financial instruments tied to Bitcoin, citing concerns over the cryptocurrency’s inherent volatility and risks to financial stability.
Despite these IMF demands, President Bukele has remained unyielding. In a post on X, he made it clear that El Salvador would continue its Bitcoin buying spree. He reminded the public that El Salvador’s Bitcoin journey began during a time of significant international skepticism, stating,
“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.“
This reaffirmation comes as part of Bukele’s broader vision to integrate Bitcoin into the nation’s economy, which has seen the government make significant investments in the digital currency. This stance is consistent with his previous declarations, such as his announcement in December 2024 that El Salvador would accelerate its Bitcoin purchases.
El Salvador’s Bitcoin Journey
El Salvador’s journey with Bitcoin began in June 2021 when it became the first nation to adopt Bitcoin as legal tender alongside the U.S. dollar. The government took steps to facilitate Bitcoin usage with initiatives like the Chivo Wallet and Bitcoin ATMs spread throughout the country. However, this decision has faced criticism from international bodies, with the IMF, in particular, warning that Bitcoin’s volatility could undermine the country’s financial stability. Despite these warnings, the government has pressed forward, positioning Bitcoin as a key element of its future economic framework.
The International Monetary Fund (IMF) in its March 3 memorandum, also urged El Salvador to halt Bitcoin mining activities and curb the issuance of public sector debt or tokenized instruments tied to Bitcoin. While President Nayib Bukele stated that the nation’s Bitcoin purchases will remain unaffected, it remains uncertain whether the government will comply with other parts of the IMF’s directive, such as restricting Bitcoin mining or limiting certain financial instruments.
Currently, El Salvador holds a Bitcoin reserve of 6,101 BTC, valued at approximately $534.5 million. According to data from The National Bitcoin Office of El Salvador, the country’s Bitcoin holdings make it the sixth-largest Bitcoin holder among nation-states. It trails only the U.S., China, the UK, Ukraine, and Bhutan in terms of Bitcoin reserves.
Global Adoption and Industry Trends
El Salvador’s pioneering move in 2021 to recognize Bitcoin as legal tender has not been widely replicated. The Central African Republic followed suit in April 2022, making Bitcoin legal tender alongside the CFA franc. However, many countries remain skeptical or outright reject Bitcoin due to concerns over volatility, regulatory challenges, and potential financial instability. Nations like China have imposed outright bans on cryptocurrency transactions, while others, such as India and Russia, are exploring regulatory frameworks to control or limit Bitcoin usage.
For the United States of America, newly sworn in President Donald Trump announced plans over the weekend to establish a U.S. strategic cryptocurrency reserve, aiming to position the country as a leader in the digital asset space. This reserve would encompass major cryptocurrencies, including Bitcoin, Ethereum, Solana, XRP, and Cardano.
Quick Facts:
- The IMF has requested El Salvador to halt public sector Bitcoin acquisitions as part of a $1.4 billion loan agreement.
- President Nayib Bukele has rejected this request, affirming that Bitcoin purchases will continue.
- Currently, El Salvador holds a Bitcoin reserve of 6,101 BTC, valued at approximately $534.5 million.
