El Salvador Doubles Down on Bitcoin Despite IMF Pressure
1min read El Salvador, a Central American nation, has been actively increasing its Bitcoin reserves over the weekend, demonstrating a strong commitment to cryptocurrency despite facing regulatory pressures from the International Monetary Fund (IMF).
The country's recent acquisition of additional Bitcoin comes as it adjusts its policies to secure a significant loan from the IMF while still promoting Bitcoin adoption and innovation. Stacy Herbert, director of the National Bitcoin Office, has confirmed that El Salvador will continue buying Bitcoin for its Strategic Bitcoin Reserve.
As of February 1, El Salvador's Bitcoin Office confirmed a crucial purchase, bringing the nation's total holdings to approximately 6,055 BTC, worth over $606 million. This continues a steady accumulation trend since the country adopted Bitcoin as legal tender in 2021. In the last month alone, the government has strategically acquired around 50.42 BTC, reinforcing its ongoing commitment to Bitcoin investment.
In response to its ongoing financial negotiations, particularly the $1.4 billion loan from the IMF, El Salvador has begun revising its regulatory landscape surrounding Bitcoin. The adjustments made in December 2024 include making Bitcoin voluntary for businesses and removing tax obligations in Bitcoin, as well as a gradual phase-out of the Chivo wallet, a state-backed digital wallet.
This realignment of policy coincides with longstanding concerns from the IMF regarding the systemic risks posed by Bitcoin adoption, highlighting the delicate balance El Salvador seeks to maintain between furthering its innovative financial framework and adhering to the stipulations of international financial agreements.
Despite these regulatory challenges, the government's overarching strategy remains focused on Bitcoin. As Stacy Herbert stated back in December, there's a clear intention to not only bolster its reserves but to expand public education and training initiatives related to Bitcoin. Herbert emphasized the government's plan with the declaration:
"El Salvador will continue buying Bitcoin (at possibly an accelerated pace AND at a discounted price) for its Strategic Bitcoin Reserve."
This unwavering commitment has not gone unnoticed, as major cryptocurrency firms are increasingly gravitating toward El Salvador due to its appealing regulatory environment. The stablecoin organization Tether recently made a strategic decision to move its headquarters there, aligning itself with President Nayib Bukele's vision for a thriving crypto ecosystem.
Moreover, President Bukele is actively encouraging other businesses to consider relocating 
