El Salvador’s Bitcoin Gamble: Why Are Purchases Continuing Amid $1.4B IMF Deal?

El Salvador’s commitment to Bitcoin remains firm, with the nation proceeding with BTC acquisitions despite recently securing a $1.4 billion agreement with the International Monetary Fund that stipulated a reduction in crypto buying.

The country’s dedicated Bitcoin Office is actively increasing its holdings, confirmed Economy Minister Maria Luisa Hayem. This decision aligns with President Nayib Bukele’s strategy of asset accumulation, signaling that Bitcoin is still a cornerstone project for the government and seeing uptake in the private sector as well.

“There’s a commitment of President Bukele to keep accumulating assets… Bitcoin keeps being an important project,” Hayem stated, underscoring the government’s long-term view on the digital asset.

Current data indicates El Salvador possesses 6,162 BTC, valued at over $580 million. While significant, this places them behind Bhutan, which holds 7,486 BTC, though the latter has reportedly been reducing its position since late 2024.

[Governments holding Bitcoin | Source: Bitcoin Treasuries]

This unwavering pro-Bitcoin stance unfolds amidst growing concerns regarding the practical implementation of the nation’s Bitcoin Law. A recent analysis suggested a stark reality: nearly 90% of businesses registered as crypto service providers in El Salvador are currently inactive.

Out of 181 registered entities, only 20 were listed as operational by the Central Reserve Bank. This raises questions about regulatory adherence, as many inactive firms might not be fulfilling requirements related to operational integrity, anti-money laundering protocols, or cybersecurity standards mandated by the Bitcoin Law Regulation.