El Salvador’s President Defies IMF Bitcoin Restrictions Despite $1.4 Billion Loan Agreement

TLDR

• President Nayib Bukele rejected IMF terms that would restrict El Salvador’s Bitcoin strategy
• IMF’s new rules demand zero government Bitcoin purchases and liquidation of the Fidebitcoin trust fund by July 2025
• El Salvador added 1 BTC to its reserves, bringing total holdings to 6,101 BTC ($510 million)
• The IMF agreement provides El Salvador with $1.4 billion but requires compliance with Bitcoin restrictions
• El Salvador faces compliance reviews in June and September, risking its loan package if it fails

El Salvador’s President Nayib Bukele has openly rejected terms set by the International Monetary Fund (IMF) that would limit the country’s Bitcoin activities. The conflict comes days after the IMF announced new requirements tied to a $1.4 billion loan agreement reached in December.

“‘This all stops in April.’ ‘This all stops in June.’ ‘This all stops in December.’ No, it’s not stopping,” Bukele wrote Tuesday on X (formerly Twitter). His defiant message came in response to the IMF’s March 2025 country report.

“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

The new IMF rules seek to establish a “continuous quantitative performance criteria” with a “ceiling of 0” on government Bitcoin purchases. This would effectively ban El Salvador from buying more Bitcoin with public funds.

The IMF agreement also requires El Salvador to liquidate its Fidebitcoin trust fund by July 2025. The country must also end government participation in the Chivo wallet system.

Another demand is for El Salvador to publish all government Bitcoin wallet addresses. These terms aim to increase transparency around the country’s cryptocurrency holdings.

El Salvador faces compliance reviews in June and September. If the country fails these reviews, it risks losing the loan package entirely.

Despite these restrictions, Bukele shows no signs of backing down. On the same day as his public statement, El Salvador’s Bitcoin Office announced the addition of 1 BTC to its national reserves.

This addition brings El Salvador’s total Bitcoin holdings to 6,101 BTC. Based on current prices, these holdings are worth approximately $510 million according to data from Arkham Intelligence.

Bukele has found support among Bitcoin advocates. Michael Saylor, chairman of Strategy, responded to Bukele’s tweet saying, “Bitcoin adoption is unstoppable.”

Bitcoin Legal Tender

El Salvador made history in 2021 when it became the first country to make Bitcoin legal tender. This bold move has been both praised and criticized by experts and institutions worldwide.

The IMF has long been critical of El Salvador’s Bitcoin strategy. In 2022, the organization urged the country to drop Bitcoin’s status as legal tender. They cited risks to financial stability and consumer protection.

During loan discussions in October last year, the IMF recommended narrowing the scope of the country’s Bitcoin Law. They also pushed for stronger regulatory frameworks and limits on public sector exposure to the asset.

Credit rating agencies have also expressed concerns. Both Fitch and Moody’s downgraded El Salvador’s credit rating in 2022.

The IMF’s latest country report goes even further with restrictions. It states that El Salvador must stop Bitcoin accumulation through both purchasing and mining.

By the end of March, the country must identify all Bitcoin the administration has accumulated. This includes listing wallets and ATMs from public company Chivo, the Bitcoin Management Office, and other organizations.

The report also rejects previously announced Bitcoin Bonds. These bonds were intended to finance Bitcoin mining infrastructure and the development of Bitcoin City.

Despite these challenges, Bukele remains committed to his Bitcoin strategy. “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,” he stated.

The IMF agreement could unlock up to $3.5 billion from various organizations. These include the World Bank and the Inter-American Development Bank.

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