El Salvador has added 15 BTC to its holdings in staunch defiance of an agreement with the International Monetary Fund (IMF). The country’s authorities have previously agreed with the IMF not to accumulate Bitcoins under an Extended Fund Facility (EFF).
El Salvador Load Up 19 BTC In New Purchasing Spree
President Nayib Bukele of El Salvador has confirmed an increase in the country’s Bitcoin (BTC) holdings, rising by 19 BTC in under a week. The latest purchase came as Bitcoin slipped under $80K at the tail end of February.
El Salvador’s decision to buy the dip saw its splurge around $1.5 million for 19 BTC, bringing its total holdings to 6,100. At current prices, El Salvador’s BTC holdings are valued at around the $500 million mark.
The country began accumulating BTC back in 2021 after elevating the cryptocurrency as a legal tender amid fierce opposition. The IMF has been El Salvador’s most vocal critique, pointing out potential pitfalls to its economy.
With the approval of a Crypto Strategic Reserve by US President Donald Trump, the US could begin its own Bitcoin accumulation spree.
Bitcoin’s Purchase Flouts IMF Requirements
El Salvador’s Bitcoin purchase defies the IMF’s directive for the country to reduce its BTC exposure. The directive came under an Extended Fund Facility (EEF) arrangement valued at $1.4 billion over 40 months.
Under the arrangement, El Salvador is expected to halt its Bitcoin purchases with the IMF stepping up monitoring for compliance. Furthermore, the arrangement will ban the creation of new publicly-owned entities from dabbling in Bitcoin activities.
“Over the course of the program, the authorities have committed not to accumulate Bitcoins,” read the IMF report. “And not to issue nor guarantee any type of Bitcoin-indexed or denominated public debt implying a liability for the government.”
El Salvador halted BTC purchases following negotiations with the IMF in February but appears to be making a reversal.
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