El Salvador’s President Nayib Bukele criticized the International Monetary Fund for its critical stance on the country’s Bitcoin adoption strategy.
The IMF in a technical memorandum tied to the EFF prohibited El Salvador from accumulating more Bitcoin through purchases or mining, demanded disclosure of all holdings by March 31, and required liquidation of certain funds.
The Global Financier also previously stipulated that El Salvador’s public sector must not voluntarily accumulate Bitcoin.
President Nayib Bukele, in what seemed like an outburst, threw subliminal shades on the IMF while doubling down on the country’s Bitcoin adoption strategy.
He explained that the country’s bitcoin Adoption strategy is a long-term effort that will continue despite the circumstances faced by the Country.
IMF’s History of Slant on El Salvador’s Bitcoin Strategy
The IMF has consistently expressed a cautious and critical stance toward El Salvador’s Bitcoin adoption strategy since the country made it legal tender in September 2021.
At First, the IMF urged El Salvador to reverse this decision, citing significant risks to financial stability, market integrity, and consumer protection.
After years of negotiation, the IMF softened its tone slightly but maintained its concerns.
Last year the IMF reached a $1.4 billion Extended Fund Facility (EFF) agreement with El Salvador. This deal required El Salvador to scale back its ambitions for Bitcoin as one of its terms.
Finally, this year, the IMF’s position hardened again. A technical memorandum tied to the EFF prohibited El Salvador from accumulating more Bitcoin through purchases or mining.
The memorandum also demanded the disclosure of all holdings by March 31 and required the liquidation of certain funds.
The mounting pressure from the IMF regarding El Salvador’s Bitcoin strategy resulted in President Nayib’s recent outburst.
At the time of the report, El Salvador held 6100 Bitcoin, which is valued at $536 million today.
