El Salvador’s President Nayib Bukele confirmed that the government will persist in buying Bitcoin, disregarding the IMF’s request for a halt in acquisitions. Bukele stated that this decision will not change despite past pressures. El Salvador continues to purchase a minimum of one Bitcoin daily, maintaining a substantial reserve while navigating ongoing IMF directives regarding cryptocurrency regulations.
President Nayib Bukele of El Salvador announced that his administration will persist in acquiring Bitcoin, notwithstanding the International Monetary Fund’s (IMF) recent request to halt these activities. On March 3, the IMF urged El Salvador to refrain from accumulating Bitcoin as part of an extended arrangement under its $1.4 billion financing program.
In a statement shared on X on March 4, Bukele asserted, “No, it’s not stopping,” thereby clarifying that El Salvador will not adhere to the IMF’s directive. He indicated that the country’s commitment to Bitcoin will remain unchanged, declaring, “If it didn’t stop when the world ostracized us,… it won’t stop now, and it won’t stop in the future.”
As part of its treasury strategy, El Salvador continued purchasing at least one Bitcoin daily on March 4. The IMF memorandum simultaneously called for El Salvador to cease Bitcoin mining operations and to limit public sector issuance of debt or tokenized instruments associated with Bitcoin. Despite Bukele’s assurance regarding Bitcoin purchases, it remains uncertain whether the country will comply with other IMF requests.
El Salvador established its initial $1.4 billion agreement with the IMF in December 2024, which entailed scaling back Bitcoin initiatives, including shifting to voluntary Bitcoin payments and allowing tax payments in US dollars. Presently, El Salvador holds 6,101 Bitcoin, valued at approximately $534.5 million, thus ranking sixth among nations in Bitcoin reserves, trailing only behind the United States, China, the United Kingdom, Ukraine, and Bhutan. The country commenced its Bitcoin acquisitions in September 2021, making Bitcoin legal tender and establishing a precedent as the world’s first nation to do so.
However, the legal tender status of Bitcoin was somewhat restricted in January 2023, when the government enacted a law to render Bitcoin acceptance voluntary for private sector merchants, subsequently changing the landscape of its utilization.
In conclusion, President Nayib Bukele firmly stated that El Salvador will continue to accumulate Bitcoin despite the IMF’s recommendations. The country remains committed to its Bitcoin strategy, which includes the daily acquisition of this cryptocurrency. However, the extent to which El Salvador will comply with other IMF directives remains to be clarified, particularly concerning Bitcoin mining and public debt associated with Bitcoin. El Salvador’s position as a pioneer in embracing Bitcoin as legal tender illustrates its ongoing commitment to integrating cryptocurrency within its economic framework, although adjustments have been made to surrounding regulations.
Original Source: cointelegraph.com
