Bukele Rejects IMF Demand to Halt Bitcoin Purchases
The Most Important Points in Brief
El Salvador’s President Nayib Bukele rejects the International Monetary Fund (IMF) demand to stop purchasing Bitcoin. Despite the conditions of a new $1.4 billion loan, the government continues its Bitcoin strategy. Critics warn that this could undermine the country’s credibility with future lenders.
The IMF Loan and Its Conditions
On February 26, the IMF approved a 40-month loan program for El Salvador. The agreement includes an initial disbursement of $113 million and aims to promote economic stability. The IMF demands, among other things, greater transparency in managing Bitcoin holdings and a limitation on government crypto purchases.
A key point of the agreement is the prohibition of voluntary Bitcoin accumulation by the public sector. Additionally, the use of Bitcoin as a payment method for businesses remains optional, while tax payments must be made exclusively in US dollars.
Bukele’s Response: “It Will Not Stop”
Despite the IMF’s conditions, Bukele reaffirmed that his country will continue purchasing Bitcoin. In a post on X (formerly Twitter), he pointed out that El Salvador continued its Bitcoin strategy even when international partners distanced themselves.
Official data shows that the government already holds over 6,100 Bitcoin. Critics see Bukele’s stance as contradictory to the loan conditions, while supporters view it as a consistent continuation of the crypto strategy.
Risks to Economic Stability?
Some experts warn that disregarding the IMF’s requirements could strain relations with other international lenders. Bitcoin advocate Samson Mow emphasized that deliberately ignoring the agreement could weaken confidence in El Salvador’s financial policies.
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On the other hand, supporters argue that El Salvador is taking a pioneering role with its Bitcoin strategy. They point to rising tourism revenues and stable remittances from abroad as economic stabilizers.
Our Assessment
El Salvador’s decision to stick with Bitcoin despite the IMF conditions presents both opportunities and risks. On one hand, the country could further establish itself as a crypto pioneer. On the other hand, there is a risk that international financial institutions may withhold future loans.
Whether Bukele’s strategy will be successful in the long run depends on further economic developments and the acceptance of Bitcoin as a state reserve. The coming months will reveal whether El Salvador can maintain its course or will have to yield to economic pressures.
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $89,971.00 |
| 24h % | -0.42 % |
| 7d % | 3.82 % |
| 30d % | -9.24 % |
| 60d % | -7.81 % |
| 1y % | 33.79 % |
| Market Cap | $1,790,161,157,892.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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