El Salvador: a proud defender of bitcoin despite IMF pressure!

El Salvador: a proud defender of bitcoin despite IMF pressure!

El Salvador is not stopping buying bitcoin, despite mounting pressure from the International Monetary Fund (IMF). On Sunday, it added another 6 BTC to its reserves, bringing its total stockpile to 6,111.18 BTC, equivalent to approximately $504 million. This bold strategy shows that El Salvador continues to stick to its goal of becoming a leader in cryptocurrencies.

IMF defiance and unwavering stance

El Salvador, a small Central American country, has decided to continue accumulating bitcoin despite the IMF's recommendations. In December 2022, it entered into a $1.4 billion loan agreement with the IMF, which is expected to be part of a larger financing package exceeding $3.5 billion. As part of this agreement, El Salvador has committed to limiting its exposure to cryptocurrencies.

Still, President Nayib Bukele's commitment belies speculation that the country might change its approach to Bitcoin. In a post on social network X (formerly Twitter) on March 5, he clearly stated, "No, it won't stop. It didn't stop when the world shut us down and most 'bitcoinists' left us, it won't stop now and it won't stop in the future."

The history and future of bitcoin in El Salvador

El Salvador became the first country in the world to adopt bitcoin as legal tender in September 2021, a move that drew criticism from global financial institutions including the IMF and the World Bank. Since then, the government has launched initiatives to develop cryptocurrencies, such as bitcoin bonds and cryptocurrency mining using geothermal energy from active volcanoes.

Although the IMF is concerned about the impact on the country's economy and has pushed El Salvador to adopt certain measures, the Bukele administration continues to present Bitcoin adoption as a key strategy for achieving financial independence and economic growth.

El Salvador is thus showing that even in times of uncertainty and pressure, they are not afraid to stand by their decision and continue on the path they have chosen. This determination could have far-reaching implications not only for El Salvador, but for the entire world of cryptocurrencies.

*This is not an investment recommendation.

The Coingarage team