- President Nayib Bukele reaffirmed his Bitcoin commitment despite IMF’s $1.4B loan conditions.
- Advocate Samson Mow warned that defying IMF terms may harm El Salvador’s credibility with future lenders.
El Salvador’s President Nayib Bukele declared this week that his government will keep buying Bitcoin [BTC], right after the International Monetary Fund (IMF) confirmed a $1.4 billion loan program.
He insisted, “It’s not stopping,” even though the IMF wants the public sector to avoid new Bitcoin purchases.
“Proof of work > proof of whining.”
Source: X
Bukele’s statement on X (formerly Twitter) included a jab at doubters who predicted an end to this policy. He reminded them that El Salvador kept buying Bitcoin even when global partners distanced themselves.
His words appeared soon after the country disclosed recent Bitcoin acquisitions. Official data shows more than 6,100 Bitcoins held by the government.
Source: Arkham
IMF’s $1.4 billion agreement: A deal with strings attached
IMF officials approved a 40-month Extended Fund Facility on 26th of February. They released details on March 3, highlighting efforts to address macroeconomic imbalances.
This loan gives El Salvador immediate access to $113 million. The program requires measures to rebuild financial buffers and improve governance.
The IMF also highlighted the importance of transparency in managing Bitcoin activities. It aims to ensure that public funds are not channeled toward unrestrained crypto purchases or tokenized liabilities.
The official IMF Staff Report and Statement on El Salvador, published under this EFF arrangement, details the restrictions tied to the loan.
It states that there will be,
“No voluntary accumulation of Bitcoins by the public sector in the context of the program.”
It also specifies that tax payments must only be made in U.S. dollars and that Bitcoin acceptance remains voluntary for private entities.
The IMF calls for strict oversight of Chivo, the government’s crypto wallet, while noting plans to end public participation in its operations.
Deputy Managing Director Nigel Clarke emphasized that the program’s main objective is to reduce this debt while avoiding macroeconomic risks from Bitcoin’s volatility.
“Sorry, bitcoiners, he has no convictions”
Despite the IMF’s concerns, Bukele’s team confirmed new Bitcoin buys. Some critics see a direct clash with the loan conditions.
Others question whether Bukele can continue these moves without jeopardizing future disbursements.
Source: X
Samson Mow, a prominent Bitcoin advocate, raised doubts about the government’s approach. He stressed that ignoring the IMF’s guidance could harm relations with other lenders. He said,
“If the plan is to just outright “defy” the IMF, I don’t think that is good for the additional loans, or to present an image of a serious stable country. Either there is an agreement which is honored, or if the plan is to not abide by the terms, wouldn’t it be better to not agree in the first place?”
Supporters, however, view Bukele’s defiance as a bold step that strengthens El Salvador’s image as a crypto trailblazer.
They argue that the country’s recovery from gang violence can now match a pioneering economic model. They also point out that tourism and remittances remain strong, which helps cushion any market turbulence.
Bukele dismissed claims that global institutions would dictate his Bitcoin agenda. He posted that when mainstream finance turned away, El Salvador stayed the course.
He said no outside force can halt the country’s plan to expand its Bitcoin holdings. The administration also highlighted several legislative changes to make Bitcoin optional for citizens while restricting its use in official transactions.
Source: X
Is this a game of optics?
The IMF’s document leaves little room for ambiguity—it calls for a halt to government Bitcoin purchases.
But Bukele’s latest actions suggest either defiance or a deliberate public relations move to maintain support from Bitcoin advocates.
John Dennehy, founder of “My First Bitcoin,” pointed out the “impossible contradiction” in Bukele’s messaging,
Source: X
Analysts now watch whether this standoff harms El Salvador’s relationship with other creditors. The IMF loan requires ongoing reviews, so any breach of conditions could freeze crucial funds.
Yet Bukele remains confident. He says his government will prove that Bitcoin can thrive without major disruptions. He frames the IMF deal as a way to stabilize public finances while pushing crypto adoption forward.
