The El Salvador government agreed to the policy, but is still buying 1 BTC per day.
- Editor's note
- Background: El Salvador adopted Bitcoin as its legal tender in September 2021 and has been actively purchasing it, but the IMF has consistently expressed concerns about its fiscal soundness and financial stability.
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The IMF recently announced in a statement that the El Salvadoran government has agreed to no longer actively purchase Bitcoin (BTC) as a policy measure and is moving forward with the withdrawal of its T-Money wallet business.
However, despite the policy agreement, the reality is different. El Salvador's official Bitcoin office still states that it is "buying one BTC per day," and on December 22nd, it announced that its holdings had increased to 7,509.
This demonstrates a gap between policy agreements with the IMF and actual government actions, raising questions about the effectiveness of the negotiations.
The IMF has demanded that El Salvador fully implement the agreement by the end of 2025 at the latest. This is interpreted as a call for substantive behavioral changes beyond policy agreements.
El Salvador became the first country in the world to adopt Bitcoin as legal tender in 2021, but has since clashed with the IMF. The IMF has consistently called for policy changes, citing concerns about Bitcoin's high volatility and financial risks.
While Bitcoin policy negotiations between the IMF and El Salvador are making progress, the gap between policy agreements and actual implementation remains, drawing attention to the future direction.
Whether the El Salvadoran government will honor its commitment to the IMF and effectively halt Bitcoin purchases by the end of the year, or continue its current daily purchases, will be a key focus for both international financial markets and the cryptocurrency industry. This case is expected to set an important precedent for national Bitcoin adoption policies.
Joohoon Choi joohoon@blockstreet.co.kr
