The Bitcoin adoption pioneering El Salvador’s commitment to the flagship digital currency is way bigger than what the International Monetary Fund (IMF) expected to be. Despite a mostly positive progress report on El Salvador, the global financial regulator insisted that El Salvador should lay off the Bitcoin (BTC) adoption across the country due to risk.
El Salvador On ‘One Bitcoin A Day’ Diet
One of the requirements for further financial assistance from the IMF included sunsetting the Bitcoin adoption in the infrastructure around the Latin American country, while the other one asked to stop buying Bitcoin (BTC). However, El Salvador’s Bitcoin Office begged to differ, continuing to acquire 1 Bitcoin a day empowered by the government.
On top of that, Economy Minister Maria Luisa Hayem just confirmed to Bloomberg that El Salvador is pursuing the Bitcoin (BTC) adoption path, along with stacking up the ladder in the country’s national Bitcoin cold wallet with the Dollar Cost Average (DCA) strategy, adding one a day.
According to the real-time stats, El Salvador’s government has added $2,850,022 worth of Bitcoin (BTC) to the national reserve, exactly 30 Bitcoins in 30 days. The national treasury is traceable on the blockchain, guaranteeing transparency in El Salvador’s Bitcoin project.
Throughout April, the flagship crypto asset inked 16.5% gains to approach the $95,000 BTC price level for the first time since February, before the global tariff chaos kicked in. On top of that, the all-time record shows a $157 million profit for El Salvador, yielding a mouth-dropping 101% return.
El Salvador’s Stormy Relationship With IMF
So why is the International Monetary Fund (IMF) frustrated about President Nayib Bukele ruled El Salvador’s courageous Bitcoin play? According to the official report, El Salvador’s governmental engagement in Bitcoin-related activities will be restricted since the $3.5 billion investment deal comes into effect.
With the voluntary accumulation by the public sector prohibited, the Bitcoin-loving Nayib Bukele continues to flex online, carrying himself with the newly-found credo of “Proof of Work > Proof Of Whining”. On the other hand, the El Salvadoran President running for the second consecutive term cares about fulfilling the expectations set by the IMF, namely the IMF Growth Forecast.
Pledging to double the 2.5% IMF Growth Forecast for El Salvador, Nayib Bukele is already renowned for bringing back international tourism and local safety after eradicating the violent gangs that made El Salvador the murder capital of the globe just 10 years ago.
Despite restoring order, Bukele’s signature Mega Prison in San Salvador is a constant target for human right activists, most notably with Donald Trump sending Abrego Garcia to El Salvador’s Mega Prison on an allegedly clerical error.
On The Flipside
- Pressing ahead with Bitcoin (BTC) purchases despite the IMF explicitly requesting to discontinue the acquisition strategy could dramatically lower El Salvador’s credit rating.
Why This Matters
To understand the reasons why El Salvador is committing to Bitcoin despite the financial regulator’s opposition, it’s very important to take note of the effort the government has put in since 2021, giving away $30 worth of Bitcoin to newly on-boarded locals. Part of which embraced the technology to avoid bank queues and or long traveling distances to pay bills.
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