IMF Intensifies Stance Against Bitcoin as Bukele Defies Restrictions in El Salvador
Despite restrictions imposed by the IMF, El Salvador's President Nayib Bukele continues to amass Bitcoin. The ongoing clash raises questions about the future of cryptocurrency in the region.
El Salvador is resolute in its stance and continues to build its Bitcoin reserves despite pressure from the IMF. Could a surge in Bitcoin to $120,000 or even $500,000 validate President Nayib Bukele’s approach?
The IMF’s Push to Halt Bitcoin Acquisitions
The ongoing conflict between El Salvador and the IMF concerns a $1.4 billion Extended Fund Facility loan finalized in December 2024, with stipulations limiting El Salvador’s ability to purchase more bitcoins. Bukele’s administration remains defiant, continuing to acquire Bitcoin.
In March, the president expressed on social media that they would not relent:
“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”
— Nayib Bukele (@nayibbukele) March 4, 2025
As of May 28, 2025, statistics indicate that El Salvador holds 6,189 BTC. This persistently grows despite the conditions outlined in the loan agreement.
El Salvador Bitcoin Accumulation
(Source: Bitcoin Treasuries)
Bukele asserts that by adopting Bitcoin, El Salvador is enhancing its economic autonomy, making the country appealing to crypto-investors while simultaneously lessening dependence on institutions like the IMF.
On the contrary, the IMF perceives El Salvador’s Bitcoin strategy as a perilous gamble, concerned that the inherent volatility of Bitcoin may jeopardize the nation’s fragile economy. As a condition of the loan, the IMF mandates that BTC acceptance should no longer be compulsory for businesses, which undermines its established status as legal tender.
Bukele’s Continued Resistance
In defiance of these limitations, El Salvador strategically positioned its Bitcoin Office outside the standard public sector framework, allowing continued Bitcoin accumulation.
On May 27, the office reported another Bitcoin purchase:
EL SALVADOR JUST BOUGHT MORE BITCOIN
— The Bitcoin Office (@bitcoinofficesv) May 28, 2025
The IMF recently acknowledged that El Salvador’s ongoing Bitcoin purchases are “consistent” with the overall loan arrangement, leaving industry observers pondering whether this indicates a shift in power dynamics regarding global crypto regulation.
Will a predictive rise in Bitcoin’s value vindicate President Bukele’s policies, or will a decline bring greater scrutiny and pressure from the IMF? Only time will tell.
