El Salvador Hits 6,000 BTC Despite $1.4B IMF Bitcoin Cutback Deal

Key Takeaways

• El Salvador’s Bitcoin treasury reached 6,000 BTC, valued at $560 million as of Dec. 30.
• The country maintains a $330 million profit on its Bitcoin investments despite IMF pressures.
• The IMF has urged a rollback of El Salvador’s Bitcoin strategy as part of a $1.4 billion aid deal.

El Salvador’s Bitcoin treasury hit a new milestone on Dec. 30, reaching 6,000 BTC, which was valued at approximately $560 million.

Despite mounting pressure from the International Monetary Fund (IMF) to scale back its ambitious Bitcoin strategy, the Central American nation is holding firm on its crypto-first approach.

El Salvador’s Bitcoin Strategy Remains Unchanged

While the IMF, which is currently negotiating the aid deal, has not objected to El Salvador buying BTC, it has insisted that the country roll back many of its key initiatives and take a more cautious stance, specifically using the asset as legal tender.

However, despite the IMF’s concerns, El Salvador has resisted these calls, remaining committed to Bitcoin.

In a notable move, the government bought $1 million worth of Bitcoin just one day after the IMF announcement, exceeding its usual purchase rate.

Since November 2022, El Salvador has followed through on its plan to buy one BTC per day, even during the bear market.

At press time, the country had accumulated 6,000 BTC, netting the government a profit of $330 million.

IMF Deal a Strategic Win for El Salvador?

While some critics argue that the IMF deal signals a retreat from El Salvador’s Bitcoin agenda, others see it as a strategic move.

The Chivo wallet, launched with much fanfare, has failed to gain widespread adoption, and Bitcoin use is largely limited to tourist areas. As a result, the IMF deal could allow the government to scale back its policies without losing face.

For El Salvador, the Bitcoin strategy  is not just about financial returns but also about asserting its independence from traditional financial systems.

By continuing to purchase Bitcoin despite IMF objections, President Nayib Bukele is signaling that his government will not back down from its crypto-first approach.

Looking Ahead

The IMF’s influence remains a key factor in El Salvador’s Bitcoin strategy, but the country’s continued investment in the asset suggests that Bukele’s vision for the future of El Salvador is unwavering.

Whether or not the country will fully embrace BTC in the long term remains to be seen, but for now, it’s clear that El Salvador intends to continue walking its own path.