El Salvador Defies IMF, Boosts Bitcoin Holdings Amid Economic Challenges

The post El Salvador Defies IMF, Boosts Bitcoin Holdings Amid Economic Challenges appeared first on Coinpedia Fintech News

Defying an IMF agreement, which stipulates El Salvador to reduce its economy’s exposure to the Bitcoin market, the Central American country has recently purchased at least eleven BTC for nearly $1 million. What’s the message that this BTC-friendly is trying to give to the crypto community? 

El Salvador’s Latest Bitcoin Purchase 

Reports indicate that at least eleven Bitcoin tokens have been purchased by the Central American country of El Salvador recently. The purchase may have cost at least $1 million, as the BTC price remains at around $93,347.36 right now. 

Before the purchase, the country held at least 6,011 BTC tokens. The latest purchase has raised the country’s BTC reserve to nearly 6,022 Bitcoin tokens, worth approximately $572 million. 

Experts believe that the latest purchase reflects the pro-crypto country’s ongoing commitment to the BTC market. 

A Consistent Bitcoin Buying Strategy by El Salvador  

El Salvador has been consistently increasing its BTC reserve since February, 2024. On February 29, 2024, the country’s Bitcoin reserve stood at 2,381 BTC. On March 15, it grew steeply to 5,689.7 BTC. By the end of the year 2022, the country had at least 6,002 BTC tokens in its reserve. Currently, it holds around 6,022 BTC. 

El Salvador’s Agreement with IMF: Bitcoin’s Role 

El Salvador is in a struggling state economically. The country’s effort to secure a $1.4 billion loan from the IMF was aimed at stabilising its embattled economy. Reports indicate that the country has plans to approach the World Bank, the Inter-American Development Bank and several regional development banks in search of financial assistance. Reports add that El Salvador targets to bring in at least $3.5 billion as assistance to boost its economy. 

Four Key Conditions of the IMF

The IMF recently accepted the loan application of El Salvador, but put forth at least four conditions, capable of destabilising the country’s extraordinary crypto ambitions.

• Firstly, the organisation wants the country to make Bitcoin acceptance voluntary for the private sector. 

• Secondly, it demands the closure of the Chivo wallet – the official Bitcoin and Dollar wallet of the El Salvdor government that allows users to make and reserve transitions in BTC free of charge. 

• Thirdly, it stipulates the discontinuation of the provision that allows people to pay taxes in Bitcoin. 

• Lastly, it calls for the reduction of the engagement of the country’s public sector in BTC-related activities. 

In conclusion, El Salvador’s continued Bitcoin purchases highlight its commitment to cryptocurrency despite external pressures. With its strategic reserves growing, the country’s economic approach remains a bold experiment on the global stage.