El Salvador Has Continued to Buy Bitcoin (BTC) Despite Striking a Deal with the IMF

El Salvador has struck a deal with the International Monetary Fund (IMF), which included a clear condition to stop Bitcoin (BTC) purchases—yet the country has continued to accumulate more BTC.

Now, however, it seems that Bukele’s government has been quietly buying BTC, despite locking in a US$1.4B (AU$2.19B) deal with the IMF that included commitments to scale back Bitcoin activity. Economy Minister Maria Luisa Hayem confirmed it directly in an interview with Bloomberg at Web Summit in Rio.

The IMF agreement, finalised late last year, was supposed to be the end of Bukele’s headline-chasing crypto policy.

In return for emergency financing, El Salvador agreed to clean up its fiscal books and ease off the Bitcoin push that made it a case study in sovereign crypto exposure. Part of that agreement also included softening the legal pressure on businesses to accept BTC —a move aimed at reassuring bondholders and international lenders.

This is not the first time they have gone against the IMF, as back in March of this year, Bukele not only confirmed an additional purchase, he reaffirmed his pro-Bitcoin stance and stated that no one, not even the international organisation, would deter the country’s BTC activities. “It won’t stop now, and it won’t stop in the future”, Bukele added.

Not a Violation, Says Hayem

Well, at the end of the day, they’re not so quiet about it.

The Bitcoin Office —a government entity specifically created to accumulate the asset— has continued flaunting purchases on social media, but also stating that El Salvador is “Bitcoin Country”:

El Salvador is Bitcoin Country. And because of that, the best and the brightest are coming to build the new El Salvador with us.

So… is this a violation of the terms and agreements of the IMF deal? Well, according to Hayem, the answer is no. It’s rather part of the broader economic vision:

“There is no violation. We have a broader economic vision, which includes diversifying revenue sources. We are also focused on attracting foreign investment and creating jobs.”

Earlier this year, the Central American nation reportedly began buying BTC again after a pause in purchases to finalise the deal with the IMF.

It is still unclear how much BTC Salvador has purchased to date. Nonetheless, the nation’s BTC holdings are estimated to be valued at around $1.3B.