El Salvador’s President Nayib Bukele has made headlines once again by asserting that his government will continue to buy Bitcoin (BTC), even after signing a deal with the International Monetary Fund (IMF) that ostensibly calls for an end to such acquisitions.
El Salvador Continues Bitcoin Acquisitions
In a recent post on social media platform X, Bukele clarified that speculation about halting BTC purchases was unfounded, stating, “No, it’s not stopping.”
This defiance comes in the wake of the IMF’s approval of a 40-month, $1.4 billion extended fund facility for El Salvador, a deal finalized on February 26.
According to the IMF’s report, part of the agreement included a commitment from the Salvadoran government not to accumulate Bitcoin and not to issue or guarantee any Bitcoin-indexed or denominated public debt.
Despite this, the government has reportedly added 12 Bitcoin to its reserves since the deal, including a recent acquisition just days ago.
The situation has raised eyebrows among bond and cryptocurrency analysts, with many expressing confusion over how these purchases align with the IMF agreement.
A spokesperson for the IMF stated to Bloomberg that the recent increases in Bitcoin holdings reported by El Salvador’s Bitcoin Office were “consistent” with the objectives of the IMF’s program, but did not specifically address Bukele’s public assertions.
Stacy Herbert, the director of El Salvador’s Bitcoin Office, further fueled the debate by questioning the credibility of the IMF’s statements on social media, sparking conversations about the transparency of the agreement.
Bukele’s Administration Reconsiders BTC Regulations
Bukele’s push for Bitcoin adoption began in 2021 when he famously declared the cryptocurrency legal tender in El Salvador, making it the first country in the world to do so.
The President initiated a plan to purchase one BTC daily, and despite initial price fluctuations, the government has invested approximately $290 million in Bitcoin, now holding around 6,101 BTC, valued at approximately $540 million.
This recent declaration from Bukele coincides with a broader trend in cryptocurrency discussions, particularly in light of President Donald Trump’s recent announcement regarding a US cryptocurrency reserve.
Trump indicated that multiple crypto tokens, including Bitcoin, Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA), would be included in this reserve, further igniting interest and speculation in the market.
Prior to Bukele’s recent comments, his administration appeared to be retracting some of its ambitious plans, including the repeal of a law that allowed taxes to be paid in BTC and a backtrack on regulations mandating businesses to accept the cryptocurrency.
As part of its agreement with the IMF, El Salvador committed to enhancing transparency by publishing financial statements for its digital wallet, Chivo, and revealing the addresses of all cold e-wallets owned by the government. These steps aim to provide accountability in the management of public funds and digital assets.
At the time of writing, BTC trades at $86,000.
Featured image from DALL-E, chart from TradingView.com
