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.
NEW: The @IMFNews eveals Bukele agreed provide IMF with internal information about #Bitcoin transactions, including cold & hot wallet addresses owned by the Government of El Salvador, the names of people involved, and to regulate #Bitcoin holdings in exchange for a $1.4B bailout. pic.twitter.com/t7wKpDr3BL
— ricardovalp on @bluesky 🇸🇻🇺🇸 (@ricardovalp) March 3, 2025
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.
JUST IN: The IMF is seeking to block 🇸🇻 El Salvador from buying more Bitcoin and refrain from issuing Bitcoin-backed debt or tokens as a condition of its 💵 $1.4B loan agreement. pic.twitter.com/R5GIPi7xpf
— Bitcoin News (@BitcoinNewsCom) March 4, 2025
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.
Billionaire Ricardo Salinas Pliego says Mexican President Claudia Sheinbaum is facing a “very challenging situation” with US President Donald Trump https://t.co/aaIwpCVRmz pic.twitter.com/sewy0sR4Lv
— Bloomberg TV (@BloombergTV) March 4, 2025
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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