IMF Urges El Salvador to Stop Bitcoin Buys in Loan Deal

As part of a $1.4 billion loan agreement, the IMF is asking El Salvador to stop accumulating BTC. It also wants the country to avoid issuing Bitcoin-backed debt and tokens.

This move could put President Nayib Bukele’s pro-Bitcoin agenda in a tough spot.

IMF Pushes El Salvador to Limit Bitcoin Use

A new policy document outlines how the government must limit BTC accumulation. The document states that public sector entities cannot voluntarily purchase or mine Bitcoin. This restriction applies to government-controlled wallets like Chivo and institutions. Such as the “Agencia Administradora de Bitcoin and Oficina Nacional del Bitcoin”. However, BTC obtained through law enforcement actions, such as seizures, would not count toward this restriction.

The IMF has long been skeptical of El Salvador’s BTC adoption. It fears that issuing Bitcoin-backed debt or tokens could rock the boat in an already volatile market. The IMF argues that such moves could create financial instability and increase the country’s debt risks.

Previously, El Salvador planned to issue BTC bonds—also called “volcano bonds”—to fund infrastructure and energy projects. But with the IMF’s conditions, these plans could be on thin ice. The government may now have to rethink its Bitcoin strategy if it wants the loan approval.

More About Bitcoin

Mexican billionaire Ricardo Salinas, with a net worth of $5.8 billion, is making a bold bet on BTC. He has allocated 70% of his investment portfolio to the cryptocurrency, showing strong confidence in its future.

Salinas, a longtime BTC advocate, believes it offers protection against inflation and government control over money. His heavy investment signals a growing trend among wealthy individuals who see BTC as a hedge against economic uncertainty.

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