Rodrigo Valdés, the IMF’s Director of the Western Hemisphere, assured that the country is staying on track with its pledge. This includes not accumulating Bitcoin through public funds.
El Salvador’s approach to Bitcoin has sparked intense global debate, with both supporters and critics weighing in. Now, the IMF confirms that the country is holding to its promise. This raises questions about the future of Bitcoin adoption in Latin America.
Can El Salvador’s Bitcoin Experiment Drive Financial Inclusion?
El Salvador made history in 2021 by becoming the first country in the world to adopt Bitcoin as legal tender. The move, spearheaded by President Nayib Bukele, was aimed at bringing financial inclusion to the country’s largely unbanked population. The government also envisioned Bitcoin as a potential economic driver, hoping it would boost remittances and attract international investment.
However, one of the most controversial aspects of the plan was the government’s decision to buy and hold Bitcoin using public funds. The idea was that Bitcoin’s value would appreciate over time, creating profits for the country’s treasury. But the volatility of Bitcoin proved to be a double-edged sword.
The IMF’s $1.4B deal with 🇸🇻El Salvador aimed to curb government #Bitcoin buys, yet the country added 7 $BTC (~$650M) in the past 7 days.
The IMF’s Rodrigo Valdes confirms compliance, hinting at non-public sector involvement in the buys.
Source: Cointelegraph pic.twitter.com/JSbk8ewG4g
— CryptosRus (@CryptosR_Us) April 27, 2025
The IMF has long expressed concerns about the risks associated with Bitcoin, particularly when public funds are involved. Now, with El Salvador halting any further accumulation, it’s clear that the country is trying to mitigate these risks while continuing to explore its use of Bitcoin in other ways.
More About Bitcoin & Institutional Adoption
Ethiopia is quietly emerging as one of the most attractive places in the world to mine Bitcoin, and surprisingly, few are paying attention. With 98% of its power sourced from renewable hydropower, the country boasts incredibly low electricity costs, making it an ideal location for energy-intensive mining operations. Beyond cheap power, Ethiopia offers a rare combination of energy resources, policy stability, and untapped potential.
🇪🇹 INSIGHT: Ethiopia is quietly becoming one of the most attractive places in the world to mine #Bitcoin, and few are paying attention.
With 98% renewable hydropower, low electricity costs, and strong government support, the country offers a rare mix of energy, policy stability,… pic.twitter.com/Gxn4A7bNus
— Cointelegraph (@Cointelegraph) April 18, 2025
Its minimal competition provides room for miners to negotiate better energy deals and scale operations effectively. Additionally, the country’s naturally cool climate helps reduce operational costs, while the government actively encourages infrastructure investment. As Africa increasingly draws global capital, Ethiopia is positioning itself at the forefront of this growing trend.
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