El Salvador Increases Bitcoin Holdings Amid IMF Pressure
El Salvador has once again made headlines in the global cryptocurrency space by increasing its Bitcoin holdings. On March 10, 2025, the country purchased 6 BTC, significantly higher than its usual daily acquisition of 1 BTC per day. This move underscores President Nayib Bukele’s continued commitment to Bitcoin accumulation, despite mounting pressure from the International Monetary Fund (IMF) to halt the strategy.
El Salvador’s Persistent Bitcoin Strategy
The National Bitcoin Office of El Salvador announced the latest purchase through its official X (formerly Twitter) account. The government has been steadily increasing its Bitcoin reserves under its “1 Bitcoin per day” policy. However, the latest buy included an additional 5 BTC, bringing the country’s total Bitcoin holdings to 6,111.18 BTC, valued at approximately $493 million at current market prices.
This bulk purchase is not an isolated event. El Salvador has made similar acquisitions in the past:
- January 19, 2025 – Added 12 BTC
- February 4, 2025 – Purchased 11 BTC
- March 3, 2025 – Acquired 5 BTC
Despite Bitcoin’s recent price decline, with the cryptocurrency trading just above $80,000 at the start of the week, the Bukele administration remains undeterred. These purchases indicate a long-term strategic approach rather than short-term speculation.
IMF’s Opposition to El Salvador’s Bitcoin Accumulation
El Salvador’s persistent Bitcoin strategy has repeatedly drawn criticism from the IMF. The international financial institution has been vocal about its concerns regarding the risks associated with a nation-state holding Bitcoin as a reserve asset.
In December 2024, El Salvador secured a $1.4 billion financing agreement with the IMF. As part of the conditions for this funding, the country agreed to revoke Bitcoin’s status as legal tender and limit public sector involvement in Bitcoin-related activities.
However, despite these terms, El Salvador has continued to accumulate Bitcoin, raising concerns that the country might be at risk of violating its agreement with the IMF.
IMF’s Latest Measures to Curb Bitcoin Accumulation
On March 3, 2025, the IMF took further steps to pressure El Salvador into reducing its Bitcoin exposure. The organization filed a new request under its Extended Fund Facility (EFF), outlining additional restrictions:
- No voluntary Bitcoin accumulation by the public sector.
- No issuance of public sector debt or tokenized instruments linked to Bitcoin.
These measures are designed to curb the government’s Bitcoin adoption strategy, forcing it to scale back its investment in the cryptocurrency. However, these new conditions have not deterred President Nayib Bukele, who remains defiant in the face of IMF pressure.
Bukele Dismisses IMF Pressure, Vows to Continue Bitcoin Purchases
Despite the IMF’s warnings, Bukele has no intention of halting Bitcoin accumulation. In response to the latest IMF request, the Salvadoran President dismissed the external pressure as mere “whining” from the international financial institution.
“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.” – Nayib Bukele
His strong statement indicates that El Salvador will continue acquiring Bitcoin, regardless of international scrutiny or financial pressures.
The Future of Bitcoin in El Salvador
El Salvador’s pro-Bitcoin stance remains one of the most controversial economic policies in the world. While Bukele has argued that Bitcoin adoption brings financial sovereignty, critics—including the IMF—warn that it increases financial instability.
However, despite these warnings, Bukele’s strategy appears to be working:
- El Salvador’s economy grew by 3.2% in 2024, outperforming many regional economies.
- The country’s Bitcoin treasury is currently in profit, as BTC prices have risen significantly since its initial purchases.
- The introduction of Bitcoin-backed bonds (Volcano Bonds) has attracted foreign investment into the country.
: El Salvador’s Bold Crypto Gamble Continues
El Salvador remains committed to its Bitcoin-first strategy, even as it faces increasing opposition from the IMF and traditional financial institutions. Bukele’s government sees Bitcoin as a long-term economic asset, while the IMF views it as a financial risk.
Whether El Salvador’s Bitcoin experiment will succeed or fail remains uncertain. However, one thing is clear: Bukele is not backing down.
