Key Takeaways
- IMF's $1.4 billion deal bans El Salvador's public sector from buying Bitcoin.
- The agreement also prohibits issuing Bitcoin-backed debt.
- Despite restrictions, President Bukele continues to acquire Bitcoin.
On March 3, the International Monetary Fund (IMF) outlined new conditions in its $1.4 billion funding deal with El Salvador.
A key requirement is that the public sector must not voluntarily accumulate Bitcoin.
The agreement also prohibits the issuance of Bitcoin-denominated debt or tokenized instruments linked to Bitcoin.
Goals of the program
IMF executive director for El Salvador, Méndez Bertolo, stated that the program aims to improve governance, transparency, and financial stability.
He confirmed that recent amendments to El Salvador’s Bitcoin Law removed its designation as mandatory legal tender, making Bitcoin acceptance voluntary.
Tax payments will remain in U.S. dollars, and public sector involvement in Bitcoin-related activities will be limited.
President Bukele’s commitment
Despite these restrictions, Salvadoran President Nayib Bukele remains committed to Bitcoin accumulation.
On March 3, he announced a new purchase, bringing El Salvador’s total holdings to 6,100 BTC.
The IMF’s loan agreement, first secured in December 2024, aims to limit government participation in Bitcoin-related economic activities, but El Salvador has continued its pro-Bitcoin policies.
