El Salvador’s President Nayib Bukele has reaffirmed the country’s commitment to accumulating Bitcoin, despite an agreement with the International Monetary Fund (IMF) that calls for scaling back crypto-related activities.
Bukele’s latest remarks follow an IMF report discouraging further government acquisitions of Bitcoin. The IMF recently disclosed details of its $3.5 billion financial arrangement with El Salvador, which includes a $1.4 billion loan approved last month.
As part of the deal, the IMF urged the Central American nation to cease Bitcoin mining and restrict public sector issuance of debt or tokenized instruments linked to Bitcoin.
The country’s Congress acted swiftly on some IMF recommendations, approving amendments to make Bitcoin acceptance voluntary in the private sector.
El Salvador Stands Firm on Bitcoin Accumulation
Despite these developments, Bukele remains resolute in his Bitcoin strategy. On March 4, he reinforced his stance by sharing a post from the country’s Bitcoin Office announcing the addition of another Bitcoin to El Salvador’s national reserves.
Bukele’s response dismissed speculation that Bitcoin accumulation would cease, contradicting IMF recommendations and media reports suggesting an end to the practice.
El Salvador has been acquiring at least one Bitcoin daily as part of its treasury strategy. In the past week alone, the country added 19 Bitcoins to its holdings, bringing the total reserve to approximately 6,101.18 BTC, valued at over $530 million.
The IMF has previously raised concerns about potential risks associated with El Salvador’s Bitcoin adoption, though it acknowledged that such risks have not yet materialized.
The financial institution’s latest memorandum underscores the tension between the IMF’s regulatory stance and El Salvador’s pro-Bitcoin policies.
While it remains unclear whether El Salvador will comply with other IMF stipulations, Bukele’s latest statements suggest that Bitcoin accumulation will continue, reinforcing his administration’s long-term commitment to the cryptocurrency.
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