IMF Pressures El Salvador to Halt Bitcoin Purchases, El Salvador Defiant

IMF’s Loan Conditions Restrict Bitcoin Use

The International Monetary Fund (IMF) has urged El Salvador to stop buying Bitcoin (BTC) as part of a $1.4 billion loan agreement. The request, issued on March 3, prohibits the public sector from accumulating Bitcoin or issuing debt tied to the cryptocurrency.

Bitcoin’s Legal Status Adjusted

IMF Executive Director Méndez Bertolo stated that El Salvador had already modified its Bitcoin Law, making BTC acceptance voluntary and ensuring taxes are paid in U.S. dollars. These changes are intended to reduce risks tied to Bitcoin’s use in government operations.

Bukele Rejects IMF’s Demand

Despite the IMF’s request, President Nayib Bukele reaffirmed on March 4 that El Salvador will continue purchasing Bitcoin daily. He dismissed concerns, emphasizing that the country remained committed to its Bitcoin strategy despite external pressure.

“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’s Bitcoin Holdings

El Salvador currently holds 6,101 BTC, valued at approximately $534.5 million. The country became the first nation to adopt Bitcoin as legal tender in September 2021, though a recent law now makes its use optional for businesses.