El Salvador Buys Bitcoin (BTC) Defying IMF Ban Directive

# El Salvador Defies IMF Warnings, Continues Bitcoin (BTC) Purchases El Salvador’s government is moving ahead with Bitcoin (BTC) purchases despite repeated cautions from the International Monetary Fund (IMF). Maria Luisa Hayem, El Salvador’s Minister of Economy, confirmed on October 30 that the government is still buying Bitcoin, sparking renewed debate over the country’s cryptocurrency strategy. This decision contrasts with a prior agreement with the IMF, under which El Salvador reportedly agreed to pause Bitcoin acquisitions as part of a $1.4 billion loan deal. On October 26, IMF official Rodrigo Valdés, Director of the Western Hemisphere Department, stated that the El Salvadoran government had adhered to guidelines and stopped Bitcoin purchases. “We can confirm that El Salvador is honoring its commitment not to accumulate Bitcoin reserves,” Valdés asserted. However, Minister Hayem’s recent statements seem to contradict this position, raising questions about the nation’s adherence to its commitments and reigniting concerns among global financial institutions. According to data from Bitcoin Office, El Salvador’s government has been systematically acquiring 1 BTC daily. The government now possesses a total of 6,162.18 BTC, valued at approximately $584.11 million (about 830.7 billion KRW) based on current market prices. The country’s expanding Bitcoin reserves continue to attract international scrutiny, especially as the source of funds for these purchases remains undisclosed. While the surging value of Bitcoin has enhanced El Salvador’s digital asset reserves, critics remain doubtful. Global market analysts are questioning the sustainability of President Nayib Bukele’s controversial Bitcoin strategy, and the IMF has flagged potential violations of loan conditions as a significant concern. El Salvador, the first nation to adopt Bitcoin as legal tender in September 2021, keeps facing scrutiny and pressure as it defies traditional economic norms and advances its daring cryptocurrency experiment.