Bitcoin Updates: El Salvador Challenges IMF with $100 Million Bitcoin Purchase, Igniting Worldwide Discussion

El Salvador has completed its biggest

acquisition so far, purchasing 1,098 BTC worth close to $100 million, . This purchase, made while the market was down, increases the nation’s total Bitcoin stash to about 7,474 BTC, now valued at nearly $676 million. President Nayib Bukele announced the deal on social media, once again emphasizing his government’s dedication to weaving Bitcoin into the country’s financial plans, even as international bodies like the International Monetary Fund (IMF) continue to scrutinize the move.

The timing of this acquisition highlights El Salvador’s calculated approach to digital currencies. By buying Bitcoin during a price slump—when values fell below $90,000—the administration seeks to broaden its national reserves and lessen dependence on the U.S. dollar. Since making Bitcoin legal tender in 2021, El Salvador has promoted the cryptocurrency as a means to achieve financial independence and modernize its economy. Still, the IMF has criticized this strategy, having

under a $1.4 billion loan deal signed in December 2024.

The government’s decision to go against IMF conditions has stirred controversy. Officials have argued that the recent transaction was simply a consolidation of internal wallets, not a fresh market buy, but the Bitcoin Office’s public announcement suggests otherwise. Stacy Herbert, who leads the Bitcoin Office, has previously stated that El Salvador will keep building its Bitcoin reserves “regardless of outside pressure,” with every transaction permanently logged on the blockchain. This position is at odds with comments from two top finance officials in July, who said the country had stopped buying Bitcoin in line with the IMF agreement.

El Salvador’s bold Bitcoin initiative has produced mixed outcomes. While initially celebrated as groundbreaking, the 2021 decision to make Bitcoin legal tender has not led to widespread use among citizens or businesses. A 2024 survey showed that just 8.1% of Salvadorans used Bitcoin for payments, a drop from 25.7% in 2021. On top of that, the government’s Bitcoin holdings have taken a hit from market swings, losing about $45 million in value by September 2023. Despite these setbacks, Bukele remains optimistic, recently posting that the country’s “Bitcoin purchases will continue.”

This latest acquisition also points to larger effects on the global financial landscape. As the first country to adopt Bitcoin as official currency, El Salvador’s actions shape how other nations perceive digital assets as reserve options. The government maintains that its early adoption could improve remittance processes, draw crypto-focused tourists, and drive financial innovation. However, critics caution that Bitcoin’s price volatility could threaten El Salvador’s fiscal health, especially given ongoing economic challenges and reliance on IMF assistance.

Experts are split on the consequences of El Salvador’s approach. While the purchase could boost confidence in crypto by showing sovereign interest, it also raises questions about transparency in custody, funding, and average acquisition costs. The move has revived discussions about digital assets’ place in central banking, with El Salvador’s experience offering a real-world example for developing countries considering Bitcoin adoption.