El Salvador, the first country in the world to adopt Bitcoin as legal tender, is defying expectations by continuing its daily Bitcoin purchases—even after securing a $1.4 billion loan agreement with the International Monetary Fund (IMF) that included terms discouraging further BTC accumulation.
Since December 19, 2024, when the IMF deal was finalized, the government has added 240 BTC to its treasury holdings. The country’s Bitcoin Office reports that the national wallet now contains 6,209 BTC.
IMF Loan Conditions Clash With BTC Policy
As part of the December loan agreement, the IMF required El Salvador to roll back certain elements of its Bitcoin policy. These conditions included revoking Bitcoin’s status as legal tender and halting the government’s public BTC acquisitions.
Nevertheless, President Nayib Bukele’s “1 BTC per day” strategy, launched in 2022, remains in effect. The policy reflects Bukele’s steadfast belief in Bitcoin’s long-term value, even as international financial institutions raise concerns.
IMF: El Salvador “Technically Compliant”
Despite the continued purchases, the IMF maintains that El Salvador is not breaching the terms of the agreement. Rodrigo Valdes, director of the IMF’s Western Hemisphere Department, clarified the situation during an April 26 news briefing.
“El Salvador continues to comply with their commitment of non-accumulation of Bitcoin by the overall fiscal sector,” Valdes stated. His remarks suggest a narrow interpretation of compliance, possibly separating the treasury’s BTC wallet from broader fiscal operations.
Read More: El Salvador Defies IMF, Adds 13 More Bitcoin to Treasury
A Loophole or Strategic Flexibility?
Analysts point to the IMF’s “flexible” reading of the agreement as a key factor enabling the ongoing acquisitions. The ambiguity surrounding what constitutes “public accumulation” of Bitcoin appears to have provided the Bukele administration with enough leeway to continue its daily buys.
As El Salvador presses forward with its Bitcoin agenda, the move sets up a compelling case study in balancing sovereign crypto policy with international financial obligations.
