Key Points:

• The International Monetary Fund (IMF) is determined to maintain El Salvador’s bitcoin reserves.
• El Salvador has secured a loan of $3.5 billion from the IMF which includes specific stipulations regarding bitcoin holdings.
• Despite this agreement, the nation continues to expand its bitcoin assets, with President Bukele affirming further purchases will continue.

The IMF disclosed on Tuesday that “efforts will continue” to ensure that the bitcoin reserves of El Salvador’s government do not fluctuate.

In March, El Salvador consented to a $3.5 billion loan from the IMF, some of which conditions revolved around the status of bitcoin. Notably, the cryptocurrency lost its legal tender status, releasing merchants from the obligation to accept it.

One of the landmark conditions was a ban on the public sector’s “voluntary accumulation of bitcoin”. This regulation implies President Bukele’s administration should cease accruing bitcoin to adhere to the loan agreement.

Nonetheless, El Salvador continues to acquire more bitcoin, seemingly contradicting the agreement. By March 4, the Salvadoran government had reported holding 6,101.15 BTC; that number has now soared to 6,189.18 BTC valued at approximately $678 million.

President Nayib Bukele stated on March 4 on X, “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.”

The IMF did not indicate any contradictions in its public remarks, emphasizing the strong performance of the program and that fiscal targets were met.

The IMF’s reporting included expressions of gratitude to the Salvadoran authorities for their collaboration and constructive dialogues.