El Salvador isn’t backing down on Bitcoin — even after the IMF stepped in.
On May 27, the International Monetary Fund (IMF) announced a $120 million payment agreement with El Salvador as part of a broader $1.4 billion loan deal. But there’s a catch: El Salvador must stop government-led Bitcoin purchases and phase out its Chivo wallet program by July.
Yet just hours after the IMF’s announcement, El Salvador’s Bitcoin Office revealed it had purchased more BTC, openly defying the agreement.
IMF Pushes Back on Bitcoin Strategy
The IMF has consistently pressured El Salvador to limit its involvement in Bitcoin, warning about the risks of crypto volatility and lack of financial transparency. Under the loan agreement, the country agreed to:
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Halt Bitcoin-related government programs.
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Keep its Bitcoin holdings steady.
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End Chivo wallet operations.
The IMF reiterated these conditions in March and again with the recent $120M installment. Still, the government — led by President Nayib Bukele — continues its Bitcoin strategy.
El Salvador Buys More Bitcoin Anyway
Following the IMF’s May 27 statement, the country’s Bitcoin Office posted on X (formerly Twitter) confirming another Bitcoin purchase. According to the official tracker, El Salvador has added 30 BTC over the past 30 days.
Its total Bitcoin holdings now stand at 6,190.18 BTC.
Bukele, who recently won re-election, has doubled down on his commitment to buy 1 BTC per day. He recently celebrated the country’s $386 million in unrealized Bitcoin profits, representing a 132% gain on the nation’s total BTC investment.
Is El Salvador in Violation?
Despite the purchases, the IMF says El Salvador is still technically compliant with its performance criteria. This may be due to a legal workaround — buying Bitcoin through non-government entities, such as the Bitcoin Office or affiliated organizations.
Anndy Lian, a blockchain adviser, suggests that this strategy allows the country to continue BTC accumulation without breaching the IMF deal directly.
What’s Next?
The IMF deal still requires executive board approval, and El Salvador’s continued Bitcoin buying may complicate things. But for now, the country appears committed to its Bitcoin-first economic strategy, no matter the pressure.
With crypto markets on the rise and BTC over $108K, Bukele’s bet is paying off — at least for now.
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