El Salvador Crazy On Bitcoin
Although It Shows No Differences in Driving it Down.Once again, Bitcoin is taking El Salvador back into the headlines.
Even with signing a $1.4 billion loan with the IMF in late 2024 under an agreement to stop all public Bitcoin purchases, El Salvador continues buying more Bitcoins. According to the official records from El Salvador Bitcoin Office, the government added 7 new bitcoins to its stores thereby increasing the national total to 6,173 BTC leading to a
Such cautious steps outline El Salvador’s unwavering belief that Bitcoin is a safe long-term sovereign investment despite pressure from other countries. As various countries are still trying to figure out their digital currency policies, El Salvador presses forward with its Bitcoin-first monetary agenda.
Requirements by IMF vs. El Salvador’s Digital Currency Philosophy
The receipt of the IMF loan package in December 2024 subjected El Salvador to strict terms, undeniably aimed at reducing its crypto sector. The key stipulations included:
Repealing Bitcoin’s status as legal tender, a status that was awarded, in January 2025.
Paving a way for Bitcoin transactions to become voluntary instead of compulsory.
Stoppage of government’s expenditure on the acquisition of Bitcoin using public funds,
It is just a quote.
But, Nayib Bukele president is not relenting his stand on this. In March 2025 after being lobbied by the IMF to stop purchasing Bitcoins, Bukele posted a highly viral post on X:
"No, it’s not stopping. Unless we stopped when the world shut us out and most crypto enthusiasts abandoned us, there would be no stopping us now and never again.”
Such stance is not just political gambit – it means El Salvador is working on its own unique path of money, and Bitcoin has a significant place in this path.
Is El Salvador setting a pre-example on the use of Bitcoin in official reserves?
Against the backdrop of general hesitations of governments towards Bitcoin, El Salvador is stepping forward with the development of its national Bitcoin treasury. This is not of a speculative nature; this is merely a formal state financed approach to investing.
Even though Bitcoin had lost its status of legal tender, El Salvador has turned its attention, reframing the role of Bitcoin as a strategic, long term asset like how countries store gold in reserves.
Such strategies may serve as an example to other nations within the developing world that are desirous of divorcing themselves from inflationary pressures, weakening of their currencies, and dependence on such international institutions as the IMF or the World Bank. For countries in a state of debt, Bitcoin is now potential digital insurance for them against dependence on conventional monetary systems.
AI Infrastructure Investment Is EL Salvador’s Next Big Play?
The country is not only focusing on Bitcoin, but is looking for technologies. Not so long ago, the government of El Salvador announced an important partnership with Nvidia, a global leader in AI technology. The cooperation between El Salvador and Nvidia targets the development of autonomous AI competencies, reflecting its aspiration to emerge as the leader in the technology area of Latin America.
Linking Bitcoin integration to strategic investments in AI, digital identity and blockchain, El Salvador is building a multi-enterprise technological ecosystem. This dual focus could unlock:
Widen-ed tech-related employment opportunities.
Ice cream hailing global funding for AI and blockchain enterprise
with the objective of becoming a technology-driven development leader.
Combining crypto and AI may well be the secret to El Salvador not allowing the economy to continue to be reshaped, thereby retaining a prospering economy.
Bukele Bet On Bitcoin
