El Salvador continues to buy Bitcoin despite IMF’s expectation to abandon it. An official from the IMF states that the country follows through on performance criteria, focusing on governance and achieving economic stability through significant reforms. Meanwhile, Bitcoin has seen a price increase, with El Salvador holding over $582 million in Bitcoin as of now.
The International Monetary Fund (IMF) has made a statement regarding El Salvador’s continuous commitment to abandon Bitcoin as a reserve asset. This seems a bit contradictory as reports indicate the Central American nation is still purchasing 1 BTC daily, actively adding to its Bitcoin reserves. According to officials from the IMF, El Salvador is expected to adhere to an agreement which seeks to limit public sector purchases of Bitcoin.
Rodrigo Valdes, director of the IMF’s Western Hemisphere Department, confirmed that El Salvador is indeed meeting the performance criteria set by the IMF. Valdes insisted that while the country is sticking to its agreement, the reforms being pursued are focused on governance and transparency—not solely on Bitcoin. He underlined, “The program of El Salvador is not about bitcoin. It is about much deeper structural reforms.” This has led to scepticism given El Salvador’s ongoing accumulation of Bitcoin, contradicting the essence of their fiscal agreement with the IMF.
Earlier this year, the IMF delivered a new set of conditions as part of a $1.4 billion financing deal with El Salvador. These conditions aim to place considerable restrictions on Bitcoin transactions by the public sector, calling for no voluntary accumulation of BTC and limiting any Bitcoin-indexed financial instruments. The executive director for El Salvador, Méndez Bertolo, mentioned the goal of these measures is to enhance governance and resilience within the country.
However, President Nayib Bukele remains steadfast against halting Bitcoin purchases. He has voiced strong opinions on the matter, stating, “If it didn’t stop when the world ostracized us, it will not stop now or in the future.” As of now, El Salvador’s digital wallet holds a staggering 6,161.18 BTC, amounting to over $582 million. Recent transactiondata shows the country is indeed purchasing one Bitcoin per day.
As for the price of Bitcoin, it seems to be performing well, having seen a 7% increase over the past week. Currently priced at $94,719, Bitcoin has surged 14% when viewed from a month ago, gaining strength which hasn’t been observed since early March. Market mood seems to be shifting positively, with the Bitcoin Fear and Greed Index climbing back into the enthusiasm territory, registering a score of 60, signalling a more optimistic sentiment among investors.
