El Salvador BTC Holdings Amid IMF Deal and Future Promise
Table of contents
IMF Deal and New Conditions
In December, El Salvador secured a $1.4 billion loan from the International Monetary Fund, with the overall package expected to exceed $3.5 billion. As part of the deal, the government agreed to scale back its Bitcoin engagement. In January, the Legislative Assembly passed a bill to meet these IMF requirements. However, on March 3, the IMF issued a new document outlining further conditions, stating,
“Going forward, program commitments will confine government engagement in Bitcoin-related economic activities, as well as government transactions in and purchases of Bitcoin,”
as explained by Nigel Clarke, deputy managing director of the IMF.
Presidential Commitment to Bitcoin
Despite these restrictions, President Nayib Bukele has made it clear that El Salvador's Bitcoin strategy remains unchanged. In an X post on March 5, Bukele declared,
"No, it's not stopping. If it didn’t stop when the world ostracized us and most 'bitcoiners' abandoned us, it won’t stop now, and it won’t stop in the future."
This resolute stance underscores the nation’s commitment to building a robust strategic reserve, reinforcing its long-term vision for crypto as a cornerstone of its economic strategy.