IMF Intensifies Bitcoin Conflict with Bukele’s El Salvador

Despite IMF limitations, El Salvador remains resolute and continues to add to its Bitcoin reserves. Will a BTCUSDT surge to $120,000 and $500,000 justify President Nayib Bukele’s approach?

El Salvador has made a landmark decision by being the first nation to recognize BTC as a legitimate form of currency, adopting it as official legal tender. Since taking this step, El Salvador has piqued the interest of significant corporations, including Tether, the entity behind USDT. This stablecoin is crucial in the cryptocurrency world, providing investors the chance to engage in some of the most exciting presales of 2025.

Nayib Bukele and the nation have established a Bitcoin Reserve independent of the public sector and have been consistently acquiring Bitcoin since August 2021.

Currently, the country possesses 6,189 BTC and plans to keep expanding its holdings, standing firm against the International Monetary Fund’s (IMF) attempts to put an end to this daring Bitcoin initiative.

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The IMF Aims for El Salvador To Cease BTC Purchases

The ongoing conflict between El Salvador and the IMF originates from a $1.4 billion Extended Fund Facility (EFF) loan agreement that was completed in December 2024 and is scheduled to last for 40 months.

This dispute highlights a philosophical conflict regarding Bitcoin and crypto’s positioning in global financial systems. The IMF has imposed various stipulations within the framework of the loan agreement, including limiting El Salvador’s capacity to acquire additional Bitcoin.

Regardless of these restrictions, Bukele’s administration continues to engage in BTC purchases, countering IMF pressure. In March, the president stated on X that they would not cease BTC acquisitions.

“This all stops in April.” “This all stops in June.” “This all stops in December.”

No, it’s not stopping.

If it didn’t stop when the world ostracized us and most “bitcoiners” abandoned us, it won’t stop now, and it won’t stop in the future.

Proof of work > proof of whining https://t.co/9pC0PoY3YQ

— Nayib Bukele (@nayibbukele) March 4, 2025

As of May 28, 2025, BTC Treasuries data verifies that El Salvador possesses 6,189 BTC. Even following the loan agreement in December 2024, the nation has continually increased its Bitcoin holdings, with frequent acquisitions throughout 2025.

(Source)

President Bukele is convinced that adopting Bitcoin enhances their economic independence, making it appealing to investors interested in crypto, some of whom are partaking in some of the top meme crypto token ICOs. Reinforcing their BTC position also lessens dependency on traditional financial institutions like the IMF.

Conversely, the IMF perceives El Salvador’s Bitcoin acquisition as a risky venture, contending that the asset’s market fluctuation poses a threat to its delicate economic state.

Consequently, while extending the $1.4 billion loan, the IMF focused on curbing the country’s Bitcoin policy to stabilize El Salvador’s economy and enhance its foreign reserves. The IMF requires that El Salvador make BTC acceptance optional for private enterprises, effectively removing its mandatory legal tender designation.

Moreover, the IMF demands to halt BTC purchases, disclose government-managed BTC wallet addresses, dissolve the Fidebitcoin fund by July 2025, and phase out the state-run Chivo Wallet.

Nayib Bukele Stays Resolute, Increasing BTC Holdings

Regardless, El Salvador is blatantly disregarding these limitations.

By establishing the Bitcoin Office outside the public sector framework, the country has persisted in its Bitcoin accumulation despite IMF requests. As of yesterday, May 27, the office purchased another BTC.

EL SALVADOR JUST BOUGHT MORE Bitcoin pic.twitter.com/HlEJMkFIOW

— The BTC Office (@bitcoinofficesv) May 28, 2025

Interestingly, the IMF has acknowledged that El Salvador’s Bitcoin acquisitions remain “aligned” with the conditions of the loan program.

It is uncertain if this more lenient stance reflects the IMF’s desire to long-term holding sway over El Salvador amidst a changing global crypto environment, especially following Donald Trump’s pro-crypto U.S. administration, or if it indicates a shift towards leniency.

Should the BTC value rise to beyond $120,000, or even reach $500,000, as forecasted by Binance founder Changpeng Zhao in early May, it would serve to justify Bukele’s strategy.

(BTCUSDT)

Conversely, a decline in value, akin to the downturn seen in 2022, may heighten pressure on El Salvador, granting the IMF enhanced power to impose loan conditions.

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The post IMF Strengthens Stance in BTC Conflict Against Bukele’s El Salvador first appeared on 99Bitcoins.