El Salvador Defies IMF Loan Conditions, Continues Bitcoin Purchases

President Nayib Bukele rejects IMF restrictions on Bitcoin acquisition, vowing to maintain the country's cryptocurrency strategy despite loan agreement terms.

The IMF's $1.4 billion loan agreement with El Salvador prohibits further public sector Bitcoin purchases and mandates liquidation of the Fidebitcoin trust fund by July 2025.
President Nayib Bukele declared that El Salvador will continue its Bitcoin accumulation strategy, adding 20 BTC to its reserves this week, bringing the total to 6,101 BTC valued at $510–$530 million.
The IMF's conditions also require the government to terminate involvement in the Chivo wallet system, publish all government Bitcoin wallet addresses, and audit crypto-related financial statements.
El Salvador's Bitcoin Law is being amended to remove Bitcoin's mandatory acceptance as legal tender, making its use by private entities voluntary.
The IMF aims to address El Salvador's macroeconomic imbalances and high fiscal deficits, but Bukele's defiance raises uncertainty about the loan's implementation.