El Salvador Defies IMF Agreement, Continues Bitcoin Purchases
In a bold move that has caught the attention of the international financial community, El Salvador‘s President Nayib Bukele has announced that the country will continue its Bitcoin acquisition strategy, despite a recent agreement with the International Monetary Fund (IMF).
The Central American nation, which made history by adopting Bitcoin as legal tender in 2021, recently secured a $1.4 billion financing deal with the IMF. This agreement, finalized in 2024, included measures aimed at reducing El Salvador’s exposure to the volatile cryptocurrency market.
However, President Bukele has made it clear that these restrictions will not deter the country’s Bitcoin ambitions. In a defiant statement on social media platform X, Bukele declared, “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”.
Key Points of the IMF Agreement
The deal with the IMF stipulated several conditions:
- Businesses in El Salvador are no longer mandated to accept Bitcoin.
- Taxes are to be paid in US dollars, not cryptocurrency.
- The government is required to publish all wallet addresses used for Bitcoin transactions.
- Audited financial statements must be released for crypto-related government entities.
- The Fidebitcoin trust fund, established to support Bitcoin adoption, must be liquidated by July 2025.
Despite these conditions, El Salvador has continued to increase its Bitcoin holdings. Recent data indicates that the government now possesses approximately 6,101 BTC, valued at around $527 million at current market prices.
Expanding Beyond Bitcoin
While maintaining its commitment to Bitcoin, El Salvador is also diversifying its economic strategy. The government is now focusing on attracting tech companies and fostering innovation in artificial intelligence:
- El Salvador is offering a 0% tax rate for companies in tech industries.
- The country has established the National Artificial Intelligence Agency (ANIA) to oversee AI-related activities.
- President Bukele recently met with prominent tech investors Ben Horowitz and Marc Andreessen to discuss technology and AI investment opportunities.
As El Salvador continues to chart its own course in the world of cryptocurrency and technology, the international community watches with interest. The country’s bold stance on Bitcoin, coupled with its new focus on emerging technologies, could potentially reshape its economic landscape in the years to come.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information
