El Salvador’s bold Bitcoin experiment is facing renewed pressure from the International Monetary Fund (IMF). As part of a $1.4 billion funding agreement, the IMF has introduced new conditions that could limit the country’s ability to accumulate BTC and weaken its pro-crypto stance.

Key IMF Demands

• No more Bitcoin accumulation by the public sector.
• Restrictions on tokenized Bitcoin-backed debt instruments.
• Changes to the Bitcoin Law, removing BTC’s legal tender status.

According to Méndez Bertolo, the IMF’s executive director for El Salvador, the program is designed to “improve governance, transparency, and economic resilience.” While BTC acceptance will remain voluntary, the country must keep U.S. dollars as the primary currency for tax payments.

What’s Next for El Salvador?

Despite pressure, President Nayib Bukele has shown no signs of backing down from the country’s Bitcoin strategy. Additional funding from the World Bank and regional financial institutions could offer some relief, but whether El Salvador will comply with IMF demands remains uncertain.

Investment Perspective: Bullish or Bearish?

• Bullish case: If El Salvador resists IMF conditions, BTC adoption could continue, signaling sovereign resistance to global financial institutions.
• Bearish case: If the country scales back its Bitcoin holdings, it could impact market sentiment and reduce institutional confidence in BTC’s role as a national reserve asset.

For now, El Salvador’s Bitcoin bet is at a crossroads, and its response to IMF pressure could shape the next phase of global crypto adoption.

This article does not constitute financial advice—always do your own research before making investment decisions.