El Salvador continues to invest in BTC but remains compliant with the terms of the $1.4 billion loan.
El Salvador continues to buy Bitcoin despite previously signing an agreement with the International Monetary Fund (IMF) that includes a clause requiring the cessation of cryptocurrency accumulation. According to blockchain data from the Bitcoin Office of El Salvador, this national treasury has purchased an additional 7 Bitcoins worth approximately $650,000 over a seven-day period ending April 27.
However, when asked about this issue, Mr. Rodrigo Valdes, Director of the Western Hemisphere Department of the IMF, confirmed that El Salvador is still adhering to its commitments. “I can confirm that they continue to comply with the commitment not to accumulate Bitcoin in the general fiscal area, which aligns with the performance criteria we require,” Valdes stated at the press conference on April 26.
The amount of Bitcoin that El Salvador holds. Source: El Salvador Bitcoin Office
Mr. Valdes also emphasized: “What is important for the discussion in El Salvador is that the cooperation program with the IMF is not solely centered around Bitcoin. The program is much broader, focusing on structural reforms, improving governance, and enhancing transparency.”
In December 2024, El Salvador reached an agreement with the IMF for a $1.4 billion loan, which required the government to abandon recognizing Bitcoin as legal tender and to cease accumulating BTC.
Anndy Lian, an author and intergovernmental blockchain advisor, explained that flexibility in interpreting the agreement could be key to helping El Salvador continue its Bitcoin strategy. “The ‘flexible interpretation’ in the agreement with the IMF indicates that Bitcoin purchases could be made through entities outside the public sector, or through reclassifying assets, to maintain technical compliance,” Lian shared with Cointelegraph.
“This alternative approach allows El Salvador to maintain a Bitcoin-friendly image while ensuring vital financial resources from the IMF to address unsustainable public debt and limited reserves,” he added.
Lian also pointed out that El Salvador's situation illustrates the increasing tension between financial innovation and traditional economic policies. According to him, the experience of this Central American country provides valuable lessons for nations considering the adoption of cryptocurrencies, especially regarding the importance of building a robust legal framework and state capacity to deal with international financial pressures.
