Despite the concessions made in the IMF deal, El Salvador is maintaining its Bitcoin strategy. The country has just bought 11 new Bitcoins.

On 19 December 2024, the International Monetary Fund (IMF) announced that it had reached a preliminary agreement with the Government of El Salvador under the Extended Fund Facility (EFF). The 40-month program would provide $1.4 billion in borrowing from the IMF, as well as an additional $2.1 billion from the World Bank and other regional institutions. According to the IMF, this agreement was obtained in exchange for a relaxation of certain articles of the “Bitcoin Ley”. This includes ending the requirement for merchants to accept BTC payments, banning the use of Bitcoin to pay taxes, government “limiting” purchases of BTC and phasing out of Bitcoin from Chivo’s portfolio management.

Not sure the country is willing to abide by this agreement to the letter because 24 hours after the announcement of the country, El Salvador has again bought for more than a million dollars of Bitcoin. However, the precise terms of this agreement remain unclear. The IMF seems to be putting pressure on governments not to adopt Bitcoin as a reserve value. The institution could be in conflict with some states such as the United States of America, El Salvador, Brazil and India as these countries are gradually moving in this direction. Their combined political and economic weight is enormous. It will be necessary to see whether the institution changes its positions in the future or if it remains in its current doctrine of defending a hyperinflationary world monetary system. At the same time, it is condemning people to a planned and gradual loss of their purchasing power.