- El salvador‘s President Bukele publicly rejected IMF loan conditions that would require the country to stop Bitcoin purchases and liquidate its crypto holdings.
- The IMF’s recent agreement includes requirements for El Salvador to establish a “ceiling of 0” on government Bitcoin purchases and liquidate its Fidebitcoin trust fund by July 2025.
- Despite international pressure, El Salvador added another Bitcoin to its national reserves, bringing total holdings to 6,101 BTC (approximately $510 million).
El Salvador’s President Nayib Bukele has firmly rejected the International Monetary Fund’s conditions for a $1.4 billion loan agreement, continuing the nation’s commitment to Bitcoin despite mounting international pressure. The defiant stance comes just days after the IMF established new requirements aimed at curbing the Central American country’s cryptocurrency activities.
Bukele made his position clear in a straightforward post on X: "’This all stops in April.’ This all stops in June.’ This all stops in December.’ No, it’s not stopping."
The IMF’s March 2025 country report released this week outlined new rules that would establish a "continuous quantitative performance criteria" with a "ceiling of 0" on government Bitcoin purchases. These conditions represent the global financial organization’s most direct attempt to restrict El Salvador’s cryptocurrency strategy since the country made Bitcoin legal tender in 2021.
According to the agreement terms, El Salvador would need to:
- Liquidate its Fidebitcoin trust fund by July 2025
- End government participation in the Chivo wallet system
- Publish all government Bitcoin wallet addresses for transparency
- Halt all Bitcoin purchases using public funds
Rather than complying, El Salvador’s Bitcoin Office announced the addition of one more Bitcoin to its national reserves, bringing the country’s total holdings to 6,101 BTC, worth approximately $510 million according to data from Arkham Intelligence.
Michael Saylor, chairman of MicroStrategy and prominent Bitcoin advocate, publicly supported Bukele’s stance, responding to the president’s tweet with: "Bitcoin adoption is unstoppable."
The conflict between El Salvador and the IMF has been ongoing since 2021. In 2022, the organization urged the country to discontinue Bitcoin’s status as legal tender, citing risks to financial stability. The standoff contributed to multiple credit rating downgrades by agencies including Fitch and Moody’s in 2022.
During loan negotiations in October last year, the IMF recommended narrowing the scope of the country’s Bitcoin Law, strengthening regulatory frameworks, and limiting public sector exposure to the digital asset. The recent conditions represent a significant escalation, effectively demanding that El Salvador choose between IMF funding and its Bitcoin strategy.
Bukele, who has staked significant political capital on the country’s Bitcoin adoption, remains unmoved by the pressure. "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. "Proof of work > proof of whining."
The standoff highlights growing tensions between traditional financial institutions and nations exploring sovereign cryptocurrency strategies, with El Salvador’s experience serving as a closely watched case study in Bitcoin adoption at the national level.
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