On March 3, 2025, the International Monetary Fund (IMF) approved an extended ease of $ 1.4 billion in favor of Salvador, aimed at supporting the country's economic reform program. This decision follows negotiations in which Salvador agreed to modify its Bitcoin policy to respond to IMF's concerns. However, the IMF prohibits the accumulation of bitcoin and many other measures.
The IMF requires the head of the Bitcoin to help Salvador
In 2021, under the leadership of President Nayib Bukele, Salvador became the first country to adopt Bitcoin as a legal currency. However, this initiative has raised concerns to international financial institutions, including the IMF, concerning potential risks for financial stability and consumer protection.
In order to meet the IMF requirements, the Salvador changed its BTC Act in January 2025, as part of a funding agreement of $ 1.4 billion. And to push the plug even further, the IMF recently added new constraints to the country of Nayib Bukele. Among others:
- Volunteering in the acceptance of Bitcoin: companies will no longer be forced to accept Bitcoin as a means of payment. This measure aims to respect the choice of merchants and to alleviate concerns related to the volatility of the crypto.
- Reduction of bitcoin in the public sector: the government undertakes to limit the voluntary accumulation of Bitcoin by the public sector and to restrict the issue of debts or instruments indexed to the BTC. This decision aims to minimize state exposure to crypto market fluctuations.
- Supervision of public electronic portfolios: the official government portfolio, Chivo, will either be sold or abandoned. This measure reflects a desire to refocus public resources and let the innovate private sector in the field of financial services linked to cryptocurrencies.
A well thought out strategy?
The agreement with the IMF is perceived as a crucial step to strengthen the confidence of investors and ensure the economic stability of the country. In addition, this extended facility could open the way to additional funding from other institutions, such as the World Bank and the Inter -American Development Bank.
Despite these adjustments, Bitcoin retains its status as a legal currency in Salvador and the government continues to believe in the potential of cryptocurrencies. However, in response to the IMF's concerns, the country now adopts a more prudent and balanced approach, seeking to take advantage of the advantages of the BTC while attenuating the associated risks.
The agreement between Salvador and the IMF therefore illustrates the challenges facing countries that seek to integrate bitcoin or cryptocurrencies in general in their national financial system. It remains to be seen whether the Salvador will apply these new clauses or if the country will challenge the IMF as was the case in December 2024, by buying 1 million euros in BTC.
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