El Salvador Defies IMF Again With Fresh Bitcoin Purchase Following Loan Review

El Salvador Quietly Expands Bitcoin Reserves Amid IMF Scrutiny

Despite the International Monetary Fund's (IMF) repeated calls for El Salvador to halt government cryptocurrency purchases as part of a $1.4 billion loan agreement, the country has discreetly increased its Bitcoin holdings. The Bitcoin Office of El Salvador recently confirmed the acquisition of eight additional Bitcoins, strengthening the nation's digital asset portfolio.

A Quiet Standoff With the IMF

This latest purchase follows the IMF staff and Salvadoran authorities reaching a staff-level agreement on the first review of their 40-month Extended Fund Facility. While the IMF acknowledged El Salvador's progress in meeting economic targets and stabilizing its macroeconomic environment, it maintained pressure to freeze the government's Bitcoin wallet balances.

The IMF has consistently advocated for limiting public sector involvement with the state-operated Chivo wallet. However, El Salvador's Bitcoin Office continues growing national reserves through routine purchases, creating an unspoken tension with international lenders.

Strategic Bitcoin Accumulation

President Nayib Bukele's administration has technically complied with the IMF agreement by pausing direct government Bitcoin purchases. The Bitcoin Office operates outside the formal fiscal sector, enabling continued small-scale daily acquisitions without breaching loan conditions.

El Salvador's Bitcoin strategy has proven financially beneficial as the cryptocurrency's value rises. President Bukele remains vocal in his support for the digital currency, dismissing any speculation about abandoning the policy.

While the IMF agreement is poised to release an additional $2 billion in development financing to help manage public debt, El Salvador's ongoing Bitcoin investments underscore its determination to make cryptocurrency a cornerstone of its economic future.