El Salvador President Defies IMF’s Request to Stop Buying Bitcoin
El Salvador’s president, Nayib Bukele, has made it clear that the country will continue to buy Bitcoin despite the International Monetary Fund’s (IMF) new request. The IMF’s request is part of a $1.4 billion loan deal with El Salvador.
Nayib Bukele’s Response
- The IMF’s new request includes a ban on the voluntary accumulation of Bitcoin by the public sector.
- The request also imposes a “ceiling of 0” on government Bitcoin purchases.
In a defiant statement on social media, Bukele stated that El Salvador’s Bitcoin buying spree will not stop. He emphasized that even when the world ostracized them and Bitcoin enthusiasts abandoned them, the country continued its Bitcoin purchases.
“This all stops in April.” “This all stops in June.” “This all stops in December.” No, it’s not stopping. 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.” – Nayib Bukele
Response from Michael Saylor
Michael Saylor, CEO of Strategy, echoed Bukele’s sentiment by stating that Bitcoin adoption is unstoppable.
Currently, El Salvador holds 6,101.18 Bitcoin with a value exceeding $527 million.
IMF’s Additional Requests
- The IMF’s new rules prohibit the public sector from voluntarily accumulating Bitcoin.
- The rules also set a “ceiling of 0” on government Bitcoin purchases.
Legislative Changes
Earlier this year, El Salvador approved a bill to modify its Bitcoin law to align with the IMF’s loan agreement. The changes include making it optional for businesses to accept Bitcoin as payment, reducing the budget deficit, and increasing reserves.
In 2021, El Salvador became the first country to adopt Bitcoin as legal tender, requiring all businesses to accept the cryptocurrency. This move attracted the attention of the IMF.
The IMF has consistently advised El Salvador to narrow the scope of its Bitcoin law and strengthen supervision of the new payment system. The organization also recommended limiting the public’s exposure to Bitcoin.
