El Salvador Defies IMF Bitcoin Accumulation Ban Despite $3.5B Loan Deal

The International Monetary Fund (IMF) reaffirmed on Tuesday that efforts are ongoing to ensure El Salvador's bitcoin holdings remain unchanged under the conditions of a $3.5 billion loan agreement. In March, the IMF and El Salvador finalized the loan package, which included provisions related to the country’s use of bitcoin.

Under the deal, bitcoin lost its legal tender status, removing the requirement for merchants to accept it. Additionally, the IMF prohibited “voluntary accumulation of bitcoin by the public sector,” effectively barring President Nayib Bukele’s government from increasing its bitcoin reserves if it wanted to remain in compliance with the agreement.

However, El Salvador has continued to buy bitcoin. On March 4, the government held 6,101.15 BTC. As of now, that number has grown to 6,189.18 BTC—currently valued at approximately $678 million—despite the IMF’s restrictions. President Bukele dismissed concerns in a post on X, stating, “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.”

Interestingly, the IMF did not mention any conflict in its latest report. Instead, it praised El Salvador’s economic performance, noting that key fiscal and reserve targets have been met. “IMF staff thank the Salvadoran authorities for the excellent collaboration and constructive discussions,” the statement concluded.

El Salvador became the first country to adopt bitcoin as legal tender in 2021, a move that has since drawn global attention and criticism. Despite international pressure and loan conditions, the country appears committed to its bitcoin strategy. The situation continues to raise questions about compliance, sovereignty, and the future of crypto-backed national policies.