El Salvador Purchases 1,090 BTC Worth $100M, Defying IMF Agreement Restrictions

Key Developments in El Salvador's Bitcoin Strategy

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  El Salvador adds 1,090 BTC, defying IMF loan agreement terms.
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  Bukele continues Bitcoin acquisition strategy, despite IMF’s restrictions on purchases.
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  El Salvador’s Bitcoin reserve grows, sparking transparency concerns amid IMF deal.

El Salvador has made its largest Bitcoin acquisition to date, purchasing 1,090 BTC on Monday evening. The country’s Bitcoin Office revealed the purchase, which amounted to roughly $100 million at the time of acquisition. This addition brought El Salvador’s total Bitcoin holdings to 7,474 BTC, worth around $676 million.

Since November 2022, El Salvador has been acquiring Bitcoin regularly, with a policy of purchasing at least 1 BTC each day. The latest batch of 1,090 BTC was added when the Bitcoin price dipped below $90,000, marking its lowest point since April. This strategic move to buy during market downturns aligns with El Salvador’s ongoing efforts to expand its Bitcoin reserves.

Defying the IMF: Bitcoin Strategy Under Scrutiny

President Nayib Bukele shared a screenshot of the purchase on his official X account, reinforcing his commitment to continuing the country’s Bitcoin acquisitions. Despite the fluctuating market, Bukele remains steadfast in his belief that Bitcoin will play a key role in El Salvador’s future economic plans.

However, the purchase raises concerns about El Salvador’s compliance with its $1.4 billion loan agreement with the International Monetary Fund (IMF). The agreement explicitly prohibits the public sector from buying Bitcoin, a condition that appears to be in direct conflict with the country’s ongoing acquisitions.

The country’s Bitcoin Office head, Stacy Herbert, has insisted that El Salvador is deliberately defying the IMF’s restrictions. She has argued that the government’s Bitcoin purchases are a strategic decision aimed at securing financial independence, regardless of IMF conditions.

Transparency and the Future of El Salvador’s Bitcoin Holdings

While the IMF has stated that recent increases in Bitcoin holdings are due to the consolidation of existing assets across government-owned wallets, this contradicts statements from the country’s finance officials. Earlier this year, El Salvador’s finance team claimed that no new Bitcoin purchases had been made since February, yet Bukele’s administration continues to publicly announce acquisitions.

This growing tension between El Salvador’s pro-Bitcoin stance and the IMF’s loan conditions raises questions about the country’s economic future and its long-term strategy with Bitcoin. As the government pushes ahead with its Bitcoin policy, the debate over transparency and the true extent of its digital currency holdings remains a key point of contention.