El Salvador actively continues to accumulate bitcoins, despite an agreement with the International Monetary Fund that calls for a freeze on such purchases. President Nayib Bukele has added 240 bitcoins since the agreement was signed, raising questions about the future of the country's crypto strategy.
Bitcoin Acquisition Outside of IMF Agreement
El Salvador added 240 bitcoins to its reserves despite an agreement signed with the IMF at the end of 2024, which mandated a freeze on accumulation. The total now stands at 6,209 BTC, valued at approximately $550 million, accounting for nearly 15% of the country's foreign exchange reserves.
IMF's Reaction to Bukele's Actions
Rodrigo Valdes, IMF regional director, confirmed that El Salvador is respecting its commitment not to accumulate bitcoin through the overall fiscal sector. Thus, purchases may continue through private entities that do not fall under the strict definitions of the agreement. This raises criticism as it could undermine the IMF's authority among other debtor countries.
Crypto Remittance Dynamics and Reality in El Salvador
Despite the president’s active bitcoin accumulation, citizens are becoming disenchanted with cryptocurrencies. In the first quarter of 2025, crypto remittances fell by 44.5%, representing only 0.52% of total money transfers. Residents continue to suffer from expropriations for crypto-infrastructure projects, while promises of major developments like the airport or Bitcoin City remain unfulfilled.
Bukele's strategy of bitcoin accumulation continues, despite a crisis of trust among the populace and threats to destabilize relations with the IMF. This situation casts doubt on the future of El Salvador's economic initiatives.
