El Salvador to Continue Bitcoin Purchases Despite IMF Request to Halt for $1.4B Deal

Highlights:

• El Salvador agreed to limit BTC activities to secure a $1.4B IMF loan.
• Despite the agreement, President Bukele insists on continuing Bitcoin purchases.
• The country now holds 6,101 Bitcoin, maintaining its daily BTC purchasing strategy.

In a March 4 post on X, El Salvador President Nayib Bukele stated that the country will continue buying Bitcoin (BTC) despite the International Monetary Fund (IMF) ‘s new request to scale back Bitcoin activities. On March 3, the IMF requested a new extended arrangement under its $1.4 billion fund for El Salvador. The technical memorandum stated that El Salvador’s public sector should not voluntarily accumulate Bitcoin. It also urged El Salvador to avoid Bitcoin-related debt or tokens that create financial obligations.

However, Bukele confirmed that El Salvador will keep buying Bitcoin, but it is unclear if the country will follow other requests. “No, it’s not stopping,” Bukele posted on Tuesday. “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.”  

El Salvador adopted Bitcoin as a legal tender in 2021, attracting global attention. In November of the following year, it initiated its strategy of purchasing one Bitcoin daily. However, the IMF has continuously voiced concerns regarding the country’s Bitcoin policy.

“This all stops in April.” “This all stops in June.” “This all stops in December.”

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.

Proof of work > proof of whining https://t.co/9pC0PoY3YQ

— Nayib Bukele (@nayibbukele) March 4, 2025

El Salvador Modifies Bitcoin Policies to Secure IMF Loan

Last December, El Salvador and the IMF agreed that the country would limit Bitcoin-related activities in exchange for a financial package. This package included a $1.4 billion loan, with the total value expected to exceed $3.5 billion. The IMF had previously stated that El Salvador’s Bitcoin reserves carried potential risks, though these risks “have not yet materialized.”

El Salvador’s Congress moved quickly to meet IMF requirements. According to Reuters, it passed amendments making Bitcoin acceptance voluntary for the private sector. Last month, the IMF approved a $1.4 billion loan, which allowed El Salvador to receive an immediate disbursement of about $113 million.

“Going forward, program commitments will confine government engagement in Bitcoin-related economic activities, as well as government transactions in and purchases of Bitcoin,” the IMF wrote in a press release on Feb. 26. On March 3, the IMF requested a new extended arrangement.

El Salvador Expands Bitcoin Holdings Despite IMF Pressure

President Bukele remains committed to expanding El Salvador’s Bitcoin reserves despite the IMF’s stance. On March 3, he confirmed the acquisition of 19 BTC, bringing the nation’s total holdings to 6,100 BTC. As of March 4, El Salvador continues its strategy of purchasing at least one Bitcoin daily. 

The National Bitcoin Office reports that the country now holds 6,101 BTC, valued at approximately $534.5 million. El Salvador holds the sixth-largest Bitcoin reserve among nations, behind the US, China, the UK, Ukraine, and Bhutan, according to BitBo’s Bitcoin Treasuries data.

MicroStrategy co-founder Michael Saylor, a prominent Bitcoin supporter, also commented on the situation. In response to Bukele’s post, he expressed support by stating, “Bitcoin adoption is unstoppable.”

Bitcoin adoption is unstoppable.

— Michael Saylor⚡️ (@saylor) March 4, 2025