Launch Terminal

IMF and El Salvador's Bitcoin Dilemma: Stability in Question Amid Defiant Purchases

by aria-crypto.com

March 13, 2025 at 22:18


IMF and El Salvador's Bitcoin Dilemma: Stability in Question Amid Defiant Purchases



El Salvador, one of the largest Bitcoin holders globally, has been warned by the ARENA opposition party about potential IMF scrutiny due to ongoing Bitcoin purchases by the government. Despite a $1.4 billion IMF loan agreement that includes stopping public purchases of Bitcoin, President Bukele has publicly announced his refusal to halt these transactions. This move by El Salvador could endanger the stability of its economy, especially considering the delicate economic state and the need for a disciplined fiscal policy.



Interestingly, the IMF previously held a strict stance against El Salvador's use of Bitcoin but recently relaxed its position, suggesting new loan opportunities if El Salvador reduced its support for Bitcoin as legal tender. Regardless of the IMF's softened approach, El Salvador has not complied with the agreement terms. Every day since receiving the IMF funds, the government has continued to buy Bitcoin, openly defying the IMF's restrictions.



This defiance raises concerns about potential conflicts with the IMF, which could have unpredictable consequences for the country's economic future. Despite ARENA's criticisms and calls for compliance with the IMF deal, their low political influence following recent electoral losses makes significant policy change unlikely.


Follow us on social media

Read more

>> Ethereum and Other Altcoins to Expand Telegram's Crypto Wallet Offerings

Telegram is set to enhance the cryptocurrency trading capabilities of its TON blockchain-based wallet, Wallet, by adding over 50 new altcoins, including Ethereum and XRP. The expansion aims to provide Telegram'...

>> Coinbase Gains Legal Victory in Vermont Staking Case, Signaling a Shift in Crypto Regulation

In a significant legal development, U.S. state Vermont has dismissed its staking services lawsuit against Coinbase, marking another victory for the cryptocurrency exchange. Paul Grewal, Chief Legal Officer at C...

>> Navigating Sanctions: Russia Adopts Crypto for Oil Trades with China and India

Russia is leveraging Bitcoin, Ethereum, and Tether (USDT) to conduct its oil trade with China and India, circumventing Western sanctions effectively. This strategic move taps cryptocurrencies to ensure smoother...

>> Russia and US Tensions Rise as Crypto Becomes Tool in Sanctions Evasion

Russia has increasingly turned to cryptocurrencies to circumvent Western sanctions, particularly in its oil trade with China and India. This move involves the use of Bitcoin, Ethereum, and Tether through interm...

>> SEC and Ripple Debate: Is XRP a Commodity or a Security?

The U.S. Securities and Exchange Commission (SEC) is nearing the end of a protracted legal battle with Ripple, focusing on the classification of XRP as a commodity. This debate echoes a prior SEC stance where E...

>> EU and SEC Scrutinize Crypto Movements as Dogecoin and OKX Draw Attention

In the evolving crypto landscape, significant developments have emerged involving regulatory actions and market movements. The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Graysca...

>> US Government and Trump Family in Talks Over Binance US Stake Amid Legal Scrutiny

Changpeng Zhao (CZ), the former CEO of Binance, has publicly refuted claims by the Wall Street Journal that he sought a pardon from the Trump administration in exchange for a stake in Binance. CZ emphasized tha...

>> UAE's Crypto Landscape Evolves as Crypto.com Secures Bitcoin Derivatives License

Crypto.com has successfully obtained a derivatives license from Dubai’s Virtual Assets Regulatory Authority (VARA), marking a significant milestone in its expansion within the UAE. This license enables Crypto.c...

>> UK Bitcoin Scandal: NCA Officer Charged with Multi-million Dollar Theft

A UK National Crime Agency (NCA) officer, Paul Chowles, has been charged with the theft of 50 Bitcoin in 2017, which was valued at approximately $77,000 at the time but now worth around $4 million. The 42-year-...

>> Russia's Strategic Shift: Leveraging Bitcoin and Ethereum for Oil Trades Amid Sanctions

Russia has adopted the use of Bitcoin and Ethereum to conduct oil trades with BRICS nations, particularly China and India, to circumvent Western sanctions. This strategic move is part of a broader effort by Rus...

All the latest crypto news in one place

Stay informed and up-to-date on the market's latest news with our Terminal's News Aggregator with curated news articles and analysis from over 50 sources, including the crypto's biggest publications.

Launch Terminal
news aggregator