El Salvador’s Bitcoin Strategy: IMF Signals Asset Recirculation
El Salvador’s Bitcoin strategy has been questioned lately after IMF statements. President Nayib Bukele says the country is buying more Bitcoin but the IMF says otherwise.
The $1.4 billion IMF credit facility agreement required the government to stop buying Bitcoin and shut down the state-run Chivo wallet.
But IMF statements say El Salvador is still within the agreement’s conditions so analysts are wondering if El Salvador is really buying more Bitcoin or just re circulating existing assets.
🇸🇻 El Salvador isn’t slowing down on Bitcoin acquisition despite IMF deal restrictions. President Bukele vows the purchases will continue! #bitcoin #ElSalvador #cryptonews
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© Copied— MagnifiCrypto (@MagnifiCrypto) March 10, 2025
Is El Salvador Moving Bitcoin Instead of Buying?
John Dennehy, founder of Mi Primer Bitcoin, thinks there are two possible explanations for El Salvador’s apparent Bitcoin accumulation:
Address Shuffling: The government could be moving Bitcoin between wallets and reporting those movements as new purchases. This would allow Bukele’s administration to project accumulation without violating IMF terms.
Private Donations: Bitcoin purchases could be funded by private partners, such as Tether, which recently moved its headquarters to El Salvador. This would allow the government to keep the pro-Bitcoin stance while formally adhering to IMF restrictions.
Dennehy says El Salvador is walking a fine line – following the IMF program while signaling defiance and independence to the public.
El Salvador’s Bitcoin Reserves Grow
Despite speculation, El Salvador’s National Bitcoin Office says the government just acquired 17 BTC and the country’s total reserves are now 6,111.18 BTC. This aligns with Bukele’s previous statement that El Salvador buys one Bitcoin a day. previous statements that El Salvador purchases one Bitcoin per day.
🚨 El Salvador Defies IMF
El Salvador is continuing to accumulate Bitcoin, despite an agreement with the International Monetary Fund (IMF) that was expected to curb its BTC acquisitions.
Bukele got no chill? 🤔 pic.twitter.com/YubXuxGQjc
— Bullish Times (@BullishTimes_) March 10, 2025
Key takeaways from the current situation:
El Salvador’s Bitcoin holdings now exceed 6,111 BTC.
The IMF maintains that the country is following its agreement.
Experts suspect Bitcoin movements may not be actual new purchases.
While Bukele’s administration is vocal about El Salvador’s Bitcoin strategy, the IMF is being careful with their words. Is El Salvador really growing its reserves or just re circulate assets?
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