El Salvador defies IMF, ramps up Bitcoin strategy with latest purchase of $1M BTC

El Salvador is accelerating its Bitcoin acquisition strategy, even as it scales back specific policies following an agreement with the International Monetary Fund (IMF).

On Dec. 20, the country’s National Bitcoin Office announced the purchase of 11 BTC for about $1 million. This acquisition adds to its daily purchase of 1 BTC, bringing the total for the past week to 18 BTC.

On-chain data shows that El Salvador now holds 5,980.77 BTC, valued at around $585.8 million.

Since becoming the first country to adopt Bitcoin as legal tender in 2021, El Salvador has used the digital currency to drive economic innovation and attract global investment.

While initial criticism predicted financial instability, the nation has emerged as a trailblazer in the digital asset space.

Doubling down on Bitcoin

The recent buying spree follows comments from Stacy Herbert, head of the National Bitcoin Office, who indicated that the country plans to increase Bitcoin purchases despite IMF-imposed conditions for the $1.4 billion loan.

The IMF agreement demanded that El Salvador reduce public sector involvement in Bitcoin-related initiatives and make Bitcoin acceptance by private businesses optional rather than mandatory. Tax payments will also remain exclusively in US dollars.

However, Herbert reaffirmed that Bitcoin remains legal tender in the country. She emphasized the government’s commitment to expanding its Strategic Bitcoin Reserve and advancing Bitcoin-related programs.

These initiatives include education efforts, such as new “Little HODLer” workbooks for elementary students, set to launch in January 2025. Similarly, the country would continue its efforts to build Bitcoin capital markets geared towards attracting new capital.

Meanwhile, Max Keiser, senior Bitcoin advisor to President Nayib Bukele, dismissed the IMF’s stipulations as largely irrelevant because Bitcoin usage in the country has always been voluntary.

Keiser pointed out Bitcoin’s growing role in savings and real estate transactions and highlighted its importance in El Salvador’s economic transformation. He stated:

“El Salvador’s success is due to Bitcoin, not the failed policies of the IMF. Salvadorans will never go back to IMF.”

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