El Salvador stares down the IMF — And keeps buying Bitcoin

The IMF said to slow down. El Salvador said no. President Bukele’s government just added five more Bitcoins to its treasury, pushing its reserves past 6,111 BTC — defying the very institution that loaned it $1.4 billion just months ago. What’s driving this bold stance?

El Salvador defies IMF

El Salvador isn’t backing down on Bitcoin (BTC), no matter what the International Monetary Fund says. 

On Mar. 10, the South American nation added five more Bitcoins to its treasury, bringing its total holdings to 6,111.18 BTC, worth around $509.5 million at current market prices. 

The move comes just months after finalizing a $1.4 billion agreement with the IMF in December 2024, part of a broader $3.5 billion financial package aimed at stabilizing the nation’s economy.

As part of the deal, El Salvador agreed to a set of conditions: Bitcoin’s use in the private sector would remain voluntary, government involvement in crypto transactions would be scaled back, and taxes would continue to be paid in U.S. dollars. 

The state-backed Chivo wallet, once a symbol of the country’s Bitcoin ambitions, would be gradually phased out while regulatory oversight of digital assets would tighten.

Yet, instead of retreating, President Nayib Bukele’s administration is pushing ahead. Why is the country still accumulating Bitcoin despite the IMF’s reservations? And what does this defiance signal to the rest of the world? Let’s break it down.

A relentless accumulation spree

When El Salvador shook hands with the IMF on Dec. 18, its Bitcoin holdings stood at 5,967 BTC. Since then, rather than pausing or reversing course, the country has amassed an additional 144 BTC, pushing its total reserve beyond 6,111 BTC. 

While its usual practice is to acquire 1 BTC per day, a pattern established under President Bukele’s “Bitcoin DCA” (Dollar-Cost Averaging) strategy, there have been multiple occasions where purchases exceeded this routine accumulation.

The first such instance came just two days after the IMF deal, when El Salvador purchased 11 BTC on Dec. 20. 

Two days later, on Dec. 22, it bought another 1 BTC, only to follow up with another 11 BTC later that same day — bringing its daily total to 12 BTC, the single largest acquisition post-IMF agreement. 

This trend continued into 2025, with notable purchases including 11 BTC on Jan. 9, another 12 BTC on Feb. 4, 8 BTC on Feb. 25, and 6 BTC on Mar. 4. The latest buy, 5 BTC on Mar. 10, reaffirmed that the country had no intention of slowing down.

What makes this accumulation even more striking is the backdrop against which it is happening. 

In January, the country’s Legislative Assembly passed a bill aimed at aligning with the IMF’s conditions, a move that signalled compliance on paper. Yet, when it comes to actual Bitcoin policy, Bukele’s government has shown no hesitation in defying expectations. 

Even after the IMF reiterated its stance on Mar. 3, explicitly stating that future commitments required El Salvador to “confine government engagement in Bitcoin-related economic activities, transactions, and purchases”, the administration responded with yet another Bitcoin buy just one day later.

Bukele himself has made it clear that El Salvador has no plans to step away from its Bitcoin experiment. On Mar. 5, the president dismissed speculation that the country’s Bitcoin buying would cease, referencing past critics who repeatedly predicted its collapse.

“This all stops in April.” “This all stops in June.” “This all stops in December.” Bukele wrote in a post on X (formerly Twitter). “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.”

El Salvador’s Bitcoin bet and its ripple effect

Whether the world likes it or not, El Salvador’s relentless pursuit is already setting a powerful precedent. One of the clearest signs of this shift is how crypto firms are now gravitating toward El Salvador. 

In January, Bitfinex Derivatives secured a Digital Asset Service Provider (DASP) license, prompting the company to relocate its operations from Seychelles to El Salvador. 

The move was seen as a major endorsement of the country’s regulatory stance, with Bitfinex CTO Paolo Ardoino calling it a “defining moment” that highlighted El Salvador’s rise as a global financial hub.

Following its lead, Tether (USDT), the world’s largest stablecoin — also decided to move its headquarters and subsidiaries to El Salvador after obtaining a local license. 

Tether’s leadership, including CEO Paolo Ardoino and COO Claudia Lagorio, has gone a step further, acquiring real estate and citizenship in the country. 

And the infrastructure to support them is already in place. El Salvador’s Digital Assets Securities Law, passed in January 2023, laid the foundation for companies to tokenize everything from debt and equity to real estate and investment funds. 

Other companies have already taken notice. Strike, the Bitcoin payments company, chose El Salvador as its regional base in 2023. 

Volcano Energy, a Bitcoin mining project powered by renewable energy, is developing a 241 MW mining farm in the country. 

As a result, El Salvador is evolving into a unique crypto jurisdiction. Unlike other nations that have merely legalized Bitcoin for transactions, it is building an entire financial ecosystem where digital assets can thrive, businesses can raise capital, and investors can engage in tokenized markets. 

Defying the IMF: A risky gamble?

Defying the IMF has never been without consequences. History shows that countries challenging their conditions or pursuing independent financial strategies often face economic retaliation in subtle but impactful ways. 

Argentina, for instance, repeatedly clashed with the IMF over debt restructuring and fiscal policies, only to endure currency devaluation, capital flight, and restricted access to global credit markets. 

Greece, during its debt crisis, faced similar fallout when it initially resisted IMF-imposed austerity measures. 

While the IMF rarely takes direct punitive action, its influence over global financial systems ensures that resistance comes at a price. 

The IMF’s recent statement on Mar. 3, reaffirming Bitcoin restrictions, may not be an overt warning, but it signals mounting pressure. 

If tensions escalate, the country could face stricter loan conditions, higher borrowing costs, or even funding delays. Rating agencies, already wary of its Bitcoin strategy, might further downgrade its credit rating, making external borrowing increasingly expensive. 

There’s also the risk of regulatory isolation, where international agencies discourage investment in El Salvador due to its Bitcoin exposure.

Yet, an alternative scenario is equally possible. If El Salvador’s strategy proves successful, the impact could be profound. Countries struggling with weak currencies, high inflation, or limited access to global financial markets may look to Bukele’s experiment as proof that a parallel financial system can work. 

The stakes, however, remain high. El Salvador still depends on the IMF for funding, making its defiance a risky gamble. A prolonged Bitcoin bear market or extreme volatility could place immense strain on the government’s approach.

For now, President Bukele remains unwavering, and despite the risks, El Salvador’s Bitcoin-first approach continues to draw attention, investment, and businesses.