El Salvador, the world’s first country to adopt Bitcoin as its fiat currency, is still buying Bitcoin, despite comments from the International Monetary Fund (IMF) appear to argue against it.
El Salvador’s Treasury has acquired over $650,000 in the seven days ending April 27th.
When asked about the country’s Bitcoin investment, Rodrigo Valdes, director of the IMF’s Western Hemisphere division, said the country continues to comply with the government’s agreement to halt the accumulation of Bitcoin.
“As for El Salvador, Valdez said at a press conference on April 26th:
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“But on top of that, I think this is very important for discussion in El Salvador,” he added. “The El Salvador programme is not about Bitcoin. From a transparency perspective, from a governance perspective, the structural reforms are much deeper and far deeper.”
In December 2024, El Salvador signed a contract with the IMF on a $1.4 billion loan, and the government had to remove Bitcoin status as fiat currency and stop the accumulation of BTC.
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Flexible interpretation leaves room for purchasing Bitcoin
According to author and intergovernmental blockchain advisor Anndy Lian, the IMF contract could enable the availability of purchase through non-governmental agencies.
“The IMF’s ‘flexible interpretation’ suggests that purchases include private sector entities or reclassified assets and maintain technical compliance,” Lian told Cointelegraph, adding:
“This alternative approach will allow El Salvador to retain Bitcoin-friendly images while securing critical IMF funds to address unsustainable public debt and limited reserves.”
Lian added that El Salvador’s strategy highlights the growing tension between financial innovation and traditional economic policies.
“The El Salvador experience provides valuable lessons for nations exploring crypto adoption, highlighting the need for a robust regulatory framework and national ability to navigate international financial pressures,” he added.
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