El Salvador buys Bitcoin despite IMF deal and global concerns

El Salvador buys Bitcoin even after promising IMF to slow purchases

El Salvador Economy Minister María Luisa Hayem confirmed that they are still purchasing BTC, despite the International Monetary Fund (IMF) having requested them to desist. This follows after the nation entered into a $1.4 billion loan agreement with the IMF, an agreement that was intended to stabilize the economy of the country for the next 40 months. After all this El Salvador buys Bitcoin prioritised the digital currency. 

BTC Remains a National Priority

At the Web Summit in Rio de Janeiro, Minister Hayem said, “Bitcoin keeps being an important project.” She explained that both the government and private businesses are focused on collecting thic cryptocurrency as part of a long-term strategy. The official Bitcoin Office of Salvador even posted on social media that the country bought another 1 BTC recently, bringing the total to 6,154.18 BTC. That’s worth over $650,000 in just seven days. 

This shows that President Nayib Bukele and his government are serious about building a "Strategic Bitcoin Reserve", even if it goes against the promises made to the IMF.

What Does the IMF Say?

Even though Salvador is still buying this crypto, the IMF has said the country is keeping its promises. Rodrigo Valdes, director of the IMF’s Western Hemisphere Department, said the program is more about making changes to how the government works, not just about this digital currency. Still, the recent purchases may raise questions about whether the government is fully sticking to the agreement.

Bitcoin in Schools

In another move to promote this cryptocurrency, the government is launching a financial education program in public schools. The first rollout will happen in 50 schools in La Libertad, a coastal area where its use has been strong since the beginning. This will help young people learn about money and cryptocurrency early on.

Big Companies Are Buying Bitcoin Too

Salvador isn’t the only one buying this digital currency. Big companies are doing the same:

• Strategy, led by Michael Saylor, owns over 553,555 coins, making it the largest corporate holder.

• Semler Scientific, a medical tech company, just added the currency to its balance sheet too making total BTC to 3303.

• BlackRock, the world’s largest asset manager, is backing Bitcoin ETFs that allow people to invest in the coin more easily.

These companies believe BTC is a strong store of value, kind of like digital gold.

What Does This Mean for Bitcoin’s Price?

When countries and business organisations buy BTC with the motive of holding and do not sell it. They are ultimately removing that amount of currency from the market. It makes that currency scarce. This eventually increases the demand and prices too.  Many experts think that as more buyers hold on to their stake, the price will rise in the long run.

The coin’s price has already seen jumps this year, and moves like the government's continued buying and the involvement of companies like BlackRock and MicroStrategy are helping support it. The coin is currently trading at $94,642.

Even with a high-stakes loan from the IMF, the Salvador continues its bold plan for cryptocurrency. Salvador is not just buying more currency but also teaching kids about it in schools. With big companies also joining in, BTC’s future looks bright.