El Salvador and the International Monetary Fund (IMF) are once again at odds over Bitcoin. Despite a major loan deal on the table, President Nayib Bukele shows no sign of backing down. The IMF wants to limit the country’s crypto exposure. But El Salvador keeps buying Bitcoin. This clash could have major consequences for both the nation’s economy and its global standing.
El Salvador’s Bitcoin Strategy Defies IMF Demands
The IMF recently agreed to release $120 million to El Salvador as part of a larger $1.4 billion loan package. But there’s a catch. The IMF made it clear that further Bitcoin accumulation by the government must stop. It also called for an end to public access to the government-backed Chivo wallet by July. Still, shortly after the deal, El Salvador’s Bitcoin Office announced another BTC purchase.
The government’s crypto wallet now holds more than 6,190 BTC. President Bukele even brags about the unrealized profit—reportedly around $386 million. Despite pressure, El Salvador continues its “one Bitcoin per day” policy. This behavior directly contradicts the IMF’s conditions. And yet, the country argues it’s still technically complying—by using non-government entities for purchases.
IMF Pushes Back: No More Bitcoin, Or No More Cash
The IMF has placed strict conditions on further payouts. To unlock up to $3.5 billion in total funding, El Salvador must hit several economic reform targets. But most notably, it must stop using public money to buy Bitcoin. The IMF also insists that the total Bitcoin in government wallets must remain unchanged.
The global lender warns that continued crypto accumulation could hurt financial stability. It sees Bitcoin as a risky bet, not a national asset. The Fund also wants El Salvador to exit the Chivo wallet project, citing transparency concerns. With the country’s debt at 85% of its GDP, the stakes couldn’t be higher. El Salvador must choose: Bitcoin freedom or IMF support.
El Salvador Plays by Its Own Bitcoin Rules
To stay on the IMF’s good side, El Salvador made some legal changes. It removed Bitcoin’s mandatory legal tender status, making it optional instead. This move was aimed at easing global concerns without stopping crypto activity entirely. However, the Bitcoin Office continues to make daily BTC purchases under a different legal structure.
Officials argue that since the office isn’t a government agency in the traditional sense, it doesn’t break the IMF agreement. This legal gray zone has allowed El Salvador to continue growing its BTC reserves. Data from Arkham Intelligence shows the country now holds around 6,200 BTC worth roughly $674 million. Meanwhile, the IMF keeps tightening its oversight and may demand stricter compliance in the future.
The Future of Bitcoin May Run Through El Salvador
This ongoing feud highlights the growing divide between traditional finance and crypto advocates. The IMF represents old-school economic policy and global financial order. El Salvador is pushing a bold, decentralized alternative. Bukele believes Bitcoin is a tool for growth and independence. The IMF sees it as a threat to stability and discipline.
What happens next could impact more than just one country. If El Salvador succeeds, other nations may follow. But if it falters, the IMF’s cautious stance will be validated. The world is watching. And for now, El Salvador shows no signs of backing away from Bitcoin.
