Despite warnings from the International Monetary Fund (IMF), El Salvador has once again increased its Bitcoin holdings, adding five more BTC to its treasury. With reserves now exceeding 6,111 BTC, the nation remains committed to its Bitcoin strategy, challenging global financial institutions.

El Salvador Rejects IMF Warnings and Expands BTC Reserves

President Bukele continues to accumulate Bitcoin despite IMF concerns.

El Salvador's latest Bitcoin purchase comes just months after finalizing a $1.4 billion agreement with the IMF, part of a broader $3.5 billion financial package. While the country agreed to limit government involvement in crypto transactions and phase out the Chivo wallet, President Nayib Bukele’s administration has ignored calls to halt Bitcoin acquisitions.

A Relentless Accumulation Strategy

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El Salvador has steadily increased its BTC reserves since its IMF deal.

Since December 2024, El Salvador has acquired an additional 144 BTC, maintaining its daily Dollar-Cost Averaging (DCA) approach. Notable purchases include 11 BTC on January 9, 12 BTC on February 4, and 6 BTC on March 4. The latest 5 BTC buy on March 10 reaffirms the nation’s commitment to its Bitcoin-first strategy.

Crypto Companies Flock to El Salvador

Major crypto firms are relocating to El Salvador as a Bitcoin-friendly hub.

El Salvador’s unwavering Bitcoin stance has attracted companies like Bitfinex Derivatives and Tether, both of which secured regulatory licenses and relocated operations to the country. Strike, a Bitcoin payments firm, and Volcano Energy, a renewable Bitcoin mining initiative, have also expanded their presence.

The Risks of Defying the IMF

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History shows that resisting the IMF can lead to economic consequences.

Countries that have opposed the IMF in the past, such as Argentina and Greece, faced financial isolation, rising borrowing costs, and currency devaluations. If tensions escalate, El Salvador could encounter stricter loan conditions or credit downgrades. However, if its Bitcoin strategy succeeds, it could inspire other nations to explore alternative financial systems.

The Future of El Salvador’s Bitcoin Experiment

Will Bukele’s gamble pay off, or will the country face economic retaliation?

As El Salvador pushes forward with its Bitcoin initiative, the stakes remain high. The success or failure of this experiment could shape future global adoption of Bitcoin as a national reserve asset. For now, despite external pressure, Bukele shows no signs of reversing course.