The International Monetary Fund (IMF) is pressuring El Salvador to reduce its Bitcoin (BTC) usage, as seen in the conditions of financial aid. However, despite commitments, the country continues expanding its BTC reserves.
IMF Pressure on El Salvador
In December last year, El Salvador's government negotiated a $1.4 billion loan agreement with the IMF, which included a commitment to halt public Bitcoin purchases. However, since then, President Nayib Bukele has indicated that the country continues to add BTC to its reserves.
Circumstances of IMF Support
The IMF agreement also unlocks potential additional funding of up to $2.1 billion from other international sources. The goal of this financing is to address fiscal policy challenges, reduce the deficit and public debt, and implement anti-corruption measures.
President Bukele's Resolve
Amid IMF calls to cease Bitcoin accumulation, El Salvador's President Nayib Bukele has expressed determination to continue his policy of increasing BTC reserves. "No, it’s not stopping," Bukele stated, reaffirming his commitment despite external pressure.
The situation highlights the tension between El Salvador's financial sovereignty and the demands of international financial organizations like the IMF. President Bukele, despite the pressure, continues to stick to his course of bolstering Bitcoin in the country's financial system.
