- El Salvador purchased 7 more Bitcoin for over $650 last week, and this came after the IMF placed some conditions on El Salvador’s $1.4 billion loan.
- The IMF states that El Salvador is compliant.
El Salvador remains invested in Bitcoin despite the IMF stating that the country has ceased to purchase Bitcoin. In the week leading up to April 27, the country received an additional seven BTC, worth more than $650K, as indicated by on-chain data from the El Salvador Bitcoin Office.
Despite the IMF’s statements that El Salvador is adhering to the requirements set for a $1.4 billion loan deal, the acquisition means that Bukele’s government is continuing the daily purchase of one Bitcoin.
The agreement signed in December 2024 contained conditions that outlined that the government would have to reduce spending on Bitcoin. However, data from the blockchain analytics Arkham Intelligence show daily deposits into the wallets known to belong to the Salvadoran treasury.
IMF Language Leaves Room for Interpretation
At an earlier press briefing on April 26, IMF Western Hemisphere Director Rodrigo Valdes stated that the country is still performing within the set performance indicators. He pointed to the fact that the country is satisfying the constraint of “non-accumulation of Bitcoin by the overall fiscal sector.”
“In terms of El Salvador, let me say that I can confirm that they continue to comply with their commitment of non-accumulation of Bitcoin by the overall fiscal sector, which is the performance criteria that we have,” Valdes noted.
However, as some pointed out, the IMF did not clearly reject ongoing purchases. Some critics have pointed out that the phrase ‘overall fiscal sector’ might encompass other subsidiary and affiliated entities or even third parties handling the purchases.
Lina Seiche, a famous crypto analyst, stated that the IMF did not call for a stop in Bitcoin buying. She said the loan requirements include future indicators that may not pertain to the current activity being implemented.
“There’s no order from the IMF for El Salvador to stop buying Bitcoin today,” Seiche said. “They’re talking about a future benchmark that isn’t even due yet.”
This has made some people question whether the Bukele administration is circumventing the issue by buying more bitcoins using other channels not prohibited by the agreement.
Bukele’s Strategy Unshaken by Global Pressure
In spite of IMF scrutiny, and general international supervision, Bukele stands his ground as the president of the country. He earlier denied earlier predictions that buying would stop by June, suggesting that El Salvador will not reduce its Bitcoin plan.
Spain’s Economic Minister, Maria Luisa Hayem, again endorses and upholds the government to accept Bitcoin. She also reaffirmed that the daily purchase policy is still active despite the IMF’s advice to limit the usage of cryptocurrencies.
According to the initial deal, El Salvador agreed to reduce the activities of the Chivo wallet, abolish the requirement for merchants to accept Bitcoin, and avoid the purchase of more Bitcoins with state funds. Bitcoin’s strong market performance has further validated Bukele’s approach. As of press time, BTC was trading at around $95,000, nearing its all-time high.
