Key Points:
- Despite the IMF’s recommendation to halt Bitcoin accumulation, El Salvador President Nayib Bukele reaffirmed that the country will continue purchasing Bitcoin.
- El Salvador recently disclosed new Bitcoin acquisitions, adding 19 BTC to its holdings, which now total approximately 6,101 BTC, valued at around $533 million.
El Salvador President Nayib Bukele remains steadfast in its Bitcoin accumulation strategy despite a renewed call from the International Monetary Fund (IMF) to halt purchases.
The IMF, as part of a $1.4 billion loan agreement with the country, urged the government to cease voluntary Bitcoin acquisitions, citing concerns over financial stability and transparency. However, Bukele has made it clear that El Salvador has no intention of complying with this request.
El Salvador President Defies IMF Request to Halt Bitcoin Purchases
On March 3, the IMF published a staff report recommending that El Salvador’s public sector stop accumulating Bitcoin.
The report also emphasized the need for greater transparency regarding the Bitcoin Office, urging the government to disclose which wallets are associated with official Bitcoin transactions. It comes amid the country’s ongoing efforts to integrate Bitcoin into its economy since passing the Bitcoin Law in 2021.
In a firm response on March 4, the El Salvador President reaffirmed his commitment to the country’s Bitcoin strategy:
“No, it’s not stopping… 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,” Bukele stated.
Government Expands Bitcoin Holdings Despite Warnings
Shortly after the IMF’s recommendation, El Salvador disclosed new Bitcoin purchases. On March 4, the government announced that it had acquired 19 BTC over the past week and later revealed an additional Bitcoin purchase the following day.
The move continues a strategy that began in September 2021, when the country initially bought 400 BTC. In November 2022, Bukele declared that El Salvador would acquire one Bitcoin daily. As of now, the nation holds approximately 6,101 BTC, valued at around $533 million at current market prices.
El Salvador now ranks as the sixth-largest government holder of Bitcoin, following the United States, China, the United Kingdom, Ukraine, and Bhutan.
IMF Raises Concerns Over Transparency and Financial Stability
The IMF’s concerns about the country’s Bitcoin policy show ongoing tensions between traditional financial institutions and El Salvador’s embrace of cryptocurrency.
On January 29, El Salvador amended its law to comply with IMF conditions for accessing a $1.4 billion loan. The IMF’s board of directors immediately approved it on February 26, allowing the disbursement of about $113 million.
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