The International Monetary Fund (IMF) suggested slowing down, but El Salvador isn’t on board with that idea. Despite receiving a $1.4 billion loan from the global financial institution just a few months back, President Bukele’s administration decided to beef up its Bitcoin reserves by adding five more coins, bringing the total to over 6,111 BTC. What’s really fueling this audacious move?
In a clear demonstration of its resistance, El Salvador isn’t stepping back from Bitcoin, regardless of the IMF’s advisories. To put it in perspective, on March 10, the country increased its Bitcoin stash to 6,111.18 BTC, translating to about $509.5 million based on current market rates. This action closely follows a major financial agreement concluded with the IMF in December 2024, which forms a segment of a larger $3.5 billion initiative aimed at bolstering the country’s economic stability.
Under this arrangement, El Salvador agreed to keep Bitcoin’s usage optional within the private sector, scale back governmental participation in crypto dealings, and continue dollar-based tax payments. The once-celebrated Chivo wallet, a key component of the Bitcoin rollout, was to be gradually phased out while regulatory measures on digital assets were to be tightened.
Contrary to these stipulations, President Nayib Bukele’s administration is pressing forward with its Bitcoin agenda. What drives El Salvador to persist in accumulating Bitcoin, and what message does this send globally? Let’s delve into the reasons behind this stance.
Strikingly, between the handshake with the IMF on December 18 and now, El Salvador’s Bitcoin holdings have increased from 5,967 BTC to over 6,111 BTC, indicating a boost of 144 BTC. This isn’t merely an anomaly; it’s part of an ongoing strategy famously called “Bitcoin DCA” (Dollar-Cost Averaging) under President Bukele, where normally just 1 BTC is acquired daily. However, there have been instances when this pattern was disrupted by larger purchases.
Just two days post-agreement with the IMF, on December 20, the country snagged 11 BTC. Two days following that, they scooped up another 1 BTC in the morning, with an additional 11 BTC later, making it a bumper 12 BTC day—the largest buy post-deal. This aggressive buying continued into 2025, marked by significant acquisitions recorded on several dates, including January 9, February 4, February 25, and March 4. Their latest acquisition on March 10 further underscores El Salvador’s unwavering commitment to Bitcoin.
Adding depth to this scenario is the government’s paper compliance with IMF stipulations in January, despite showing a penchant for defying expectations in actual Bitcoin policy. On March 3, the IMF reiterated its stance on Bitcoin, only for El Salvador’s administration to proceed with another Bitcoin purchase the following day.
President Bukele has made it abundantly clear that El Salvador is not backing down from its Bitcoin adventure. He dismissed the ongoing speculation about the potential cessation of Bitcoin acquisitions, alluding to voices that once predicted dire outcomes for the country’s crypto venture.
Instead of retreating, El Salvador’s bold Bitcoin strategy is creating ripples worldwide. One indication of the impact is the migration of crypto firms to the country. Bitfinex Derivatives notably obtained a Digital Asset Service Provider (DASP) license, shifting its base from Seychelles to El Salvador—a move hailed as recognizing El Salvador’s emerging financial hub status.
Following suit, Tether, the giant stablecoin company, also transitioned its headquarters to El Salvador after securing local licensing. High-ranking members of Tether secure both real estate and citizenship, further showcasing commitment.
El Salvador has erected foundational legislation such as the Digital Assets Securities Law, enacted in January 2023, to facilitate the growth of an advanced digital assets market. With the participation of companies like Strike and Volcano Energy, the nation is chartering a unique path in the crypto space, unlike other nations that offer mere transactional clarity.
Challenging the IMF doesn’t come without potential repercussions. History is replete with examples like Argentina and Greece, both facing financial tremors when defying IMF’s modus operandi. Even while the IMF stops short of overt retaliations, its influence on global financial circles can result in consequences like stricter borrowing paradigms, credit downgrades, and international reticence.
Conversely, the success of El Salvador’s strategy could embolden nations facing similar economic challenges to emulate its model, where a parallel financial framework, invigorated by crypto, plays out.
The stakes are undeniably high for El Salvador, especially with its continued reliance on the IMF for funding, rendering its crypto policy strategy fraught with risk. Any major downturn in Bitcoin’s value could spell challenges ahead. Nonetheless, President Bukele remains committed, and El Salvador’s pioneering path in Bitcoin continues to attract attention alongside investments and new business horizons.
