Bitcoin News

Story: IMF Pushes El Salvador to Halt Bitcoin Purchases Amid $120M Loan Payment

By Sakamoto Nashi

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The International Monetary Fund (IMF) has recently reveal an agreement with El Salvador to release $120 million as part of a larger $1.

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However, this latest deal comes with a clear expectation from the IMF: El Salvador must curb its growing involvement with Bitcoin, including stopping further purchases and…

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Bitcoin Restrictions Included in IMF Loan Terms

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On May 27, the IMF outlined its requirements tied to the loan disbursement, emphasizing that El Salvador should refrain from expanding its Bitcoin holdings.

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The IMF specified that “efforts will continue to ensure that the total amount of Bitcoin held across all government-owned wallets remains unchanged.

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The agreement is part of a 40-month loan deal negotiated in December 2024, aiming to support El Salvador’s economy while addressing concerns over risks linked to the country's…

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El Salvador Defies IMF, Continues Bitcoin Buying

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Despite the IMF’s position, El Salvador’s president, Nayib Bukele, has publicly confirmed that the country will persist in purchasing one Bitcoin daily as part of its treasury…

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Shortly after the IMF’s reveal, El Salvador’s official Bitcoin Office confirmed another round of Bitcoin purchases on social media platform X (formerly Twitter).

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El Salvador’s Bitcoin Investment Shows Strong Gains

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President Bukele recently shared that El Salvador’s Bitcoin treasury has generated an unrealized profit of approximately $386 million, representing a 132% return on the…

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While El Salvador maintains its Bitcoin buying strategy, the IMF has acknowledged that the country is meeting certain performance targets outlined in the loan agreement.

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However, the Fund remains cautious about the potential risks of further Bitcoin purchases and broader cryptocurrency-related activities, reinforcing its call for restraint.

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Possible Workaround to Maintain Compliance

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Some blockchain industry experts suggest that El Salvador might maintain technical compliance with the IMF loan terms by purchasing Bitcoin indirectly through non-governmental…

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