- El Salvador buys 240 Bitcoin as the IMF signs off on a $1.4 billion funding deal.
- The move strengthens its pro-crypto stance, despite past warnings from global financial institutions.
What happened: El Salvador increases Bitcoin reserves after IMF support
El Salvador has bought 240 Bitcoin. The announcement was made by President Nayib Bukele through a post on social media. The purchase took place shortly after the International Monetary Fund approved a $1.4 billion loan programme. This brings the country’s total Bitcoin holdings to around 5,750 BTC. The loan was granted through the IMF’s Extended Fund Facility. The fund is meant to help El Salvador manage its public debt and improve economic stability. The country has faced limited access to credit in global markets.
The Bitcoin Office confirmed the transaction and called it part of a larger strategy. The government sees Bitcoin as a long-term asset. In 2021, El Salvador made Bitcoin legal tender. Since then, it has continued to build its reserves. This new purchase shows that the government is not changing its position, even after concerns raised by international lenders. The country treats Bitcoin as a central part of its economic direction. The timing of the purchase, close to the IMF approval, adds attention to the move.
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Why it’s important
El Salvador’s continued support for Bitcoin stands in contrast to warnings from the IMF. The IMF has said that Bitcoin is unstable. It also said that its legal use could weaken the financial system. These warnings have not changed the government’s actions. The country still sees Bitcoin as a tool for economic change. The IMF did not mention this new purchase when approving the loan. The gap between the two positions is clear.
The government has introduced other ideas to grow its crypto use. It plans to issue Bitcoin bonds and give tax benefits to crypto investors. Supporters say this may bring investment and support independence from traditional lenders. Critics say it may create more risk, especially if the market drops. El Salvador is using Bitcoin as a major part of its national plan. The outcome may affect how other countries think about digital assets and economic choices.
