El Salvador’s innovative approach to Bitcoin (BTC) has been the centre of debate since 2021, when the Latin American country became the first around the globe to make BTC legal tender. With many ups & downs, Bitcoin’s (BTC) journey brought in a considerable amount of tourism, contributing towards education & increasing national security.
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While acknowledging this, the International Monetary Fund (IMF) requested El Salvador to wind down its Bitcoin purchases. On March 3, 2025, the regulatory body stated that “Going forward, program commitments will confine government engagement in Bitcoin-related economic activities, as well as government transactions in and purchases of Bitcoin”, referencing their $3.5 billion financing deal with El Salvador, freshly signed last month by both parties.
Aside from directly prohibiting the government from purchasing Bitcoin (BTC), the International Monetary Fund (IMF) also asked El Salvador to gradually wind down the Chivo crypto e-wallet. Also, the international financial regulator is trying to enforce amendments on El Salvador’s BTC status as legal tender, arguing that actual Bitcoin adoption in the country has been “marginal”.
Bukele All In On Bitcoin: “No, it’s Not Stopping”
In a courageous tweet on Tuesday evening, El Salvador’s re-elected President Nayib Bukele mocked the IMF’s harsh stance on the country’s Bitcoin (BTC) purchases. “This all stops in April.” “This all stops in June.” “This all stops in December.” No, it’s not stopping.” Showing off the recent 13 BTC acquired over the past 7 days, the treasury made $1,123,252 in unrealized profit from this purchase so far.
Then, the Millennial President concluded that Proof of Work (PoW) consensus, on which crypto’s flagship asset is based, is certainly better than “proof of whining”. The message features a screenshot of El Salvador’s Bitcoin treasury, a strategic reserve unveiled to the public in March, 2024.
Pledging to buy a Bitcoin a day to keep the inflation away since November 18, 2022, El Salvador’s Nayib Bukele made a profit of $33,460,810 from this Dollar Cost Average (DCA) strategy. Cumulatively, El Salvador’s Bitcoin strategic reserve now boasts a gigantic return of $138,735,660, bumping the total balance to nearly $545 million, according to NayibTracker.
On The Flipside
- In their periodical performance report, the International Monetary Fund (IMF) assessed that El Salvador’s society has a “limited trust in the technology” due to Bitcoin’s price fluctuations.
- The $3.5 billion development deal between El Salvador and IMF could face setbacks or huge fines due to a contract prohibiting “voluntary accumulation of Bitcoins by the public sector”.
Why This Matters
Blockchain adoption assessments pave the way for a smoother transition from traditional to digital finance, as Bitcoin operations can be reflected in macroeconomic and fiscal stats.
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