Despite repeated calls for restraint from global financial institutions, El Salvador is doubling down on its Bitcoin strategy, continuing its daily purchases of BTC, even under the shadow of a multi-billion-dollar agreement with the International Monetary Fund (IMF).
In a recent press briefing, Economic Minister María Luisa Hayem confirmed that the Nayib Bukele-led administration has not halted its Bitcoin acquisition program.
This directly contradicts earlier reports suggesting El Salvador had paused its activity under IMF pressure. The revelation reignites scrutiny over whether the nation may be in breach of its $1.4 billion IMF loan program, a deal contingent upon reduced exposure to crypto volatility.
As of this month, El Salvador’s Bitcoin treasury has swelled to over 6,100 BTC, currently valued at approximately $570 million, according to on-chain tracking tools and treasury disclosures from the official government Bitcoin office.
IMF’s Transparency Concerns Escalate
The IMF has made no secret of its disapproval. In its most recent Article IV consultation, the institution urged El Salvador to improve fiscal discipline, increase transparency, and curtail speculative crypto ventures.
While acknowledging Bitcoin’s potential for financial innovation, the IMF remains wary of its use as a legal tender and as a reserve asset, particularly in developing economies reliant on structured debt and international aid.
What’s fueling deeper concern now is the lack of transparency around El Salvador’s BTC acquisition methods. With IMF-related funding constraints in place, no clear explanation has been offered about how the government is financing its one-bitcoin-per-day purchase model.
“There are legal and fiscal transparency standards that must be met for international support to continue,” a senior IMF official reportedly told The Financial Times. “The use of crypto without full disclosure contradicts those principles.”
Parallel Markets and Private Channels?
Speculation is mounting that the Bukele government may be operating via undisclosed crypto exchanges or private OTC (over-the-counter) channels to sidestep regulatory monitoring.
Blockchain analysts note that the transactions do not appear to be routed through major U.S.-regulated platforms, suggesting alternative settlement infrastructure might be in use.
This theory gains credibility in light of President Bukele’s previous comments that “not all Bitcoin buys are public,” hinting at shadow mechanisms for acquisition, possibly through state-linked digital wallets, sovereign wealth funds, or offshore intermediaries.
Political Calculus: National Strategy or Economic Risk?
Supporters of Bukele’s strategy argue that the aggressive Bitcoin play is a long-term visionary. Backed by a bullish market, the country’s reserves have appreciated significantly, especially since Bitcoin’s resurgence in 2024.
The administration continues to frame its Bitcoin-centric model as a modern alternative to fiat dependency, emphasizing financial sovereignty.
However, critics warn that this approach may come at the cost of international credibility and macroeconomic stability. Should the IMF deem El Salvador non-compliant, access to critical funding may be revoked, threatening fiscal liquidity and investor confidence.
Moreover, the renewed tension could impact the country’s sovereign bond ratings, with analysts at Moody’s and Fitch already flagging concerns over El Salvador’s evolving debt profile and opaque fiscal practices.
Conclusion
El Salvador’s unwavering Bitcoin accumulation strategy has placed the country on a collision course with global financial regulators. As the IMF raises alarms over funding secrecy and compliance shortfalls, El Salvador remains publicly unapologetic—and financially committed—to Bitcoin.
With more than 6,100 BTC now in its national treasury and no sign of slowing down, the nation’s crypto experiment has entered a high-stakes phase.
Whether it sets a revolutionary precedent or spirals into economic turbulence may hinge on forthcoming IMF decisions—and the Bukele administration’s willingness to disclose what’s happening behind the curtain.
