El Salvador May Accelerate Bitcoin Buys Following IMF Deal Concessions

El Salvador may have reached a deal with the International Monetary Fund that will see the tiny country scale back its Bitcoin law—but it’s still going to “HODL.” And it might even step up its BTC buys.

That’s according to Stacy Herbert, the head of El Salvador’s National Bitcoin Office, who wrote on X (formerly known as Twitter) Thursday that the country may even continue buying the cryptocurrency at an “accelerated pace” going forward.

El Salvador in 2021 made Bitcoin legal tender along with the U.S. dollar. The new law meant that businesses had to accept the cryptocurrency if they had the technological means to do so.

The IMF criticized the move on a number of occasions. El Salvador has been in talks with the institution for years about a loan to help the country’s economy grow, but as a result, El Salvador will have to change some of its Bitcoin policies.

On Wednesday, the entered a $1.4 billion loan agreement with the IMF—and as part of the agreement, it must make Bitcoin voluntary for the private sector while restricting the public sector’s involvement in crypto activities.

Herbert wrote on X that the government’s strategy of buying and holding the asset would continue: “El Salvador will continue buying Bitcoin (at possibly an accelerated pace) for its Strategic Bitcoin Reserve,” the post read. 

El Salvador’s millennial president, Nayib Bukele, came up with the Bitcoin law. He has frequently bought Bitcoin to hold as a reserve asset, and has at times showcased the country’s holdings on social media amid its recent price spike.

SpotOnChain data shows that the government’s official wallet holds over 5,900 BTC, currently priced at $579.4 million.

Herbert further wrote that the government would sell or phase out its government-sponsored wallet, Chivo. The authorities gave citizens $30 of free Bitcoin using the app back in 2021.  

Polls have shown that President Bukele is very popular with Salvadorans, partly thanks to a tough crime crackdown—but citizens have largely remained indifferent to Bitcoin. 

Edited by Andrew Hayward