El Salvador’s bold Bitcoin experiment is now at a crossroads. As part of a $1.4 billion deal with the International Monetary Fund (IMF), the country has reportedly agreed to stop using public funds to buy Bitcoin by July 2025.
The IMF is also pushing El Salvador to stop Bitcoin mining and liquidate a government fund used for crypto purchases. Despite these conditions, President Nayib Bukele has clarified that his government has no plans to back down.
Bukele’s Defiant Stance
Bukele took to social media on Tuesday to dismiss any notion that Bitcoin buying would stop. He mocked the repeated claims that El Salvador would end its Bitcoin strategy, stating, “This all stops in April. This all stops in June.”
This all stops in December. No, it’s not stopping.” He added that if his government continued buying Bitcoin even when the world turned against them, it wouldn’t stop now.
This response came just a day after the IMF published its latest report on El Salvador. The report called for an end to Bitcoin purchases, both through direct buying and mining.
The IMF also demanded other financial reforms, including adjustments to the Bitcoin Law, which was modified by the national congress in January.
Also Read: El Salvador Congress Greenlights Bitcoin Law to Make BTC Optional for Businesses
Continued Bitcoin Purchases
In a move that seemed like a direct response to the IMF, El Salvador revealed on Monday night that it had bought 19 more Bitcoin over the past week. Just a day later, the country announced another single Bitcoin purchase.
This brings El Salvador’s total Bitcoin holdings to 6,101.15 BTC, worth roughly $530 million at current market prices.
Economic Challenges and IMF Support
While Bukele’s government has strengthened security and boosted tourism, the country still faces economic hurdles. High debt levels and fiscal deficits remain major concerns.
The IMF’s $1.4 billion agreement could unlock additional funding of up to $3.5 billion from other global financial institutions like the World Bank. This financial support could help stabilize the economy, but it comes with strict conditions—including the demand to curb Bitcoin involvement.
El Salvador’s Bitcoin strategy has always been a high-risk gamble. While supporters see it as a path to financial freedom, critics argue that it adds instability to the country’s already fragile economy.
Bukele remains unwavering, but with growing international pressure, the coming months will test how much he is willing to push back.
Also Read: El Salvador Defies IMF Deal By Acquiring 12 More Bitcoin Amid Rise in BTC Price