El Salvador isn’t backing down from Bitcoin just yet. Despite agreeing to an International Monetary Fund (IMF) loan deal that restricts government Bitcoin purchases, President Nayib Bukele says the country will keep adding to its reserves. On March 4, Bukele confirmed El Salvador had bought another Bitcoin, raising eyebrows across the industry.
IMF Agreement Puts Bitcoin Buying in Question
El Salvador struck a $1.4 billion loan agreement with the IMF in January under the condition that it would stop accumulating Bitcoin and remove its status as compulsory legal tender. However, Bukele’s recent purchase appears to contradict that. The IMF quickly clarified that the buy didn’t violate the agreement, stating it had consulted with Salvadoran officials and received assurances that purchases remained within agreed terms, according to Reuters.
Why Did El Salvador Take the Deal?
Despite Bukele’s strong pro-Bitcoin stance, analysts suggest that economic pressure forced El Salvador’s hand. The country’s debt has risen significantly in recent years, and the IMF loan was a necessary step to stabilize finances. With the April 30 deadline for the agreement approaching, Bukele’s moves suggest he’s making last-minute acquisitions before restrictions fully kick in. Whether this strategy pays off remains to be seen.
At the time of writing, Bitcoin is sitting at $89,361.17.
