El Salvadorโs 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, Bitcoinโs (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 โGoing forward, program commitments will confine government engagement in Bitcoin-related economic activities, as well as government transactions in and purchases of Bitcoinโ, 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 Salvadorโs BTC status as legal tender, arguing that actual Bitcoin adoption in the country has been โmarginalโ.
Bukele All In On Bitcoin: โNo, itโs Not Stoppingโ
In a courageous tweet on Tuesday evening, El Salvadorโs re-elected President Nayib Bukele mocked the IMFโs harsh stance on the countryโs Bitcoin (BTC) purchases. โThis all stops in April.โ โThis all stops in June.โ โThis all stops in December.โ No, itโs not stopping.โ 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 cryptoโs flagship asset is based, is certainly better than โproof of whiningโ. The message features a screenshot of El Salvadorโs 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 Salvadorโs Nayib Bukele made a profit of $33,460,810 from this Dollar Cost Average (DCA) strategy. Cumulatively, El Salvadorโs 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 Salvadorโs society has a โlimited trust in the technologyโ due to Bitcoinโs price fluctuations.
- The $3.5 billion development deal between El Salvador and IMF could face setbacks or huge fines due to a contract prohibiting โvoluntary accumulation of Bitcoins by the public sectorโ.
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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