El Salvador scaled back its Bitcoin strategy for IMF, buys more anyway

El Salvador has acquired an additional 52 Bitcoin since January 2025, defying conditions of a US$1.4 billion International Monetary Fund (IMF) loan agreement aimed at scaling back its crypto initiatives.

The country’s total holdings now exceed 6,055 Bitcoin — worth roughly US$570 million on today’s rate — even as it pledged to reduce public-sector crypto involvement under the December 2024 IMF deal.  

The IMF agreement requires El Salvador to make Bitcoin acceptance voluntary for businesses, limit government crypto activities, and collect taxes exclusively in US dollars. Last week, lawmakers approved legal amendments to comply, including phasing out the state’s role in Chivo Wallet — a state-backed crypto app launched in 2021 to promote Bitcoin adoption.  

Despite these steps, President Nayib Bukele’s administration continues its daily Bitcoin purchases, doubling its usual one-BTC acquisition to two on February 1. 

The government has employed a dollar-cost averaging strategy since late 2022, accumulating Bitcoin as part of Bukele’s wider push to use the cryptocurrency as a tool for financial inclusion. Over 70% of Salvadorans lack access to traditional banking.  

Earlier mandates forcing businesses to accept Bitcoin faced resistance due to volatility concerns, prompting the IMF to demand policy changes. 

While the government has relaxed requirements for companies, it signals no plans to halt Bitcoin reserves growth.  

El Salvador’s sustained Bitcoin purchases highlight its commitment to cryptocurrency as a strategic asset, despite international pressure.

Also Read – How a bold gamble on Bitcoin sparked a national revival in El Salvador

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