El Salvador and their bitcoin today

[Don Pedro Dinero]

From a pure accounting point of view they are using the money borrowed from the IMF to buy bitcoin, although in practice this is not the case, as the bitcoin is being bought from one part of the budget while the IMF loan is being used to finance other items.

How much help does this have for the El Salvadoran economy?

Not much at least for the moment, as the bitcoin they hold is worth $600 million while their GDP is $34 billion. But if they continue to buy and bitcoin continues to appreciate, there will come a time when it will be very important for their economy.

[DubemIfedigbo001]

But they borrowed $1.4 billion from the IMF in December last year, so I feel that they used the loan money to buy bitcoins, even though they promised the IMF not to use public funds to buy bitcoins.

They never promised IMF on anything unrelated to that, IMF only warned them to be cautioned regarding any kind of investment like bitcoin that could be volatile, though there may be terms to the granting of the loan, but I don't think buying bitcoin is part of what could be termed as breach of law according to their agreement, this only shows how El-Salvador is been logical in their investments and IMF may only borrow them money, but not to dictate for them.

They had the agreement that The El Salvadorian government would rescind from using bitcoin as the country's legal tender and ensure bitcoin payments are completely voluntarily and in addition to that, they stipulated that the government would stop using public funds to purchase bitcoin, this was their agreements as El Salvador obtained a loan of $1.4B from IMF in December 2024.  

IMF went to the extent of issuing them another request in January 2025 for the purchases to end by March 2025 citing their earlier agreements, but Bukele reacted with Posting on his X account that it is not going to stop now or even in the future.

El Salvador remains adamant and continues buying bitcoin everyday and even speculates on increasing their purchasing amount in the future.

What bothers me is that the same IMF that is pressuring them to stop buying bitcoin is still giving them more money even as they are going against agreements

[Aanuoluwatofunmi]

And about them ignoring the IMF El Salvador Ignores IMF, Buys More Bitcoin Anyway

This is absolutely the best capsule for the IMF. They deserve the snub as it doesn't and should not bother them if El Salvador decides to use their funds for a Bitcoin purchase. It is their investment, and that concerns them. El Salvador has benefited from Bitcoin investment, so they are pushing to further invest in it as a result of what they have experienced. That is what every right-thinking individual would do because they know Bitcoin has a big and better position in the future, and also they stand a chance to benefit from it in the long run.

IMF will always ensures that they are ready and available to render you the required loan for your struggles to continue, but they will never render you any advise on how you could be free of taking debts anymore, so if you think taking loan from IMF is good for you, then one is just signing up his lifetime dependencies on lending funds, El-Salvador realized this and choose their own path, neglect the decision and advise from IMF and take lead on what's good for them, i hope many of us are also learning from this, a rich man will always want you to keep coming and begging, but you can beg once to never have a reason to beg again, what you use the money given determines the aftermath on this.

[henry_of_skalitz]

From a pure accounting point of view they are using the money borrowed from the IMF to buy bitcoin, although in practice this is not the case, as the bitcoin is being bought from one part of the budget while the IMF loan is being used to finance other items.

How much help does this have for the El Salvadoran economy?

Not much at least for the moment, as the bitcoin they hold is worth $600 million while their GDP is $34 billion. But if they continue to buy and bitcoin continues to appreciate, there will come a time when it will be very important for their economy.

It's a good start, and it all starts little by little: in the long run, they will get the most value of what they do now..

[AprilioMP]

Then I have a question, that is, the current bitcoin price is so good, why doesn't El Salvador pledge bitcoins to lending platforms to obtain an annualized rate of return, which is about 6% to 9%, and they have 6188 bitcoins, worth 657,911,721USD, and can earn 59 million USD in interest each year.
How much help does this have for the El Salvadoran economy?

They will not stop what they are doing. The way Nayib Bukele manages money is very good because it is not done out of ambition but consistently.
When those who oppose Bukele want his activities to stop, they think that one time when prices fell, El Salvador's money also fell, which affected the country's finances. That's what I mean, including the IMF.

With the amount of Bitcoin that El Salvador has pocketed, they have actually gotten a price return with a good percent. Why would they expect a small percent if in a certain period of time they can get more.

[fikrett]

Then I have a question, that is, the current bitcoin price is so good, why doesn't El Salvador pledge bitcoins to lending platforms to obtain an annualized rate of return, which is about 6% to 9%, and they have 6188 bitcoins, worth 657,911,721USD, and can earn 59 million USD in interest each year.
How much help does this have for the El Salvadoran economy?

They will not stop what they are doing. The way Nayib Bukele manages money is very good because it is not done out of ambition but consistently.
When those who oppose Bukele want his activities to stop, they think that one time when prices fell, El Salvador's money also fell, which affected the country's finances. That's what I mean, including the IMF.

With the amount of Bitcoin that El Salvador has pocketed, they have actually gotten a price return with a good percent. Why would they expect a small percent if in a certain period of time they can get more.

There is no fear, but confidence in what El Sal does, - that's why they will succeed in the end using BTC like that, even though, it wouldn't be the main factor that would allow them to grow their GDP exponentially.

[Riceandbean]

In the past week (as of june 2 2025), El Salvador has purchased a total of 7 bitcoins, and 30 in the past 30 days, indicating that it continues to implement the "daily purchase" strategy.

But they borrowed $1.4 billion from the IMF in December last year, so I feel that they used the loan money to buy bitcoins, even though they promised the IMF not to use public funds to buy bitcoins.

Then I have a question, that is, the current bitcoin price is so good, why doesn't El Salvador pledge bitcoins to lending platforms to obtain an annualized rate of return, which is about 6% to 9%, and they have 6188 bitcoins, worth 657,911,721USD, and can earn 59 million USD in interest each year.
How much help does this have for the El Salvadoran economy?

The president has done a good  job. The security situation in the country has improved. I am of the opinion that the Bitcoin experiment didn't work well as expected and maybe they were bullied the IMF and other unknown people who are powerful behind the curtains.

Bukele’s not flawless, sure, but he’s taken some bold moves. I have a feeling that in the long run, history might judge him a lot more favorably than people do right now.

[Fiatless]

In the past week (as of june 2 2025), El Salvador has purchased a total of 7 bitcoins, and 30 in the past 30 days, indicating that it continues to implement the "daily purchase" strategy.

But they borrowed $1.4 billion from the IMF in December last year, so I feel that they used the loan money to buy bitcoins, even though they promised the IMF not to use public funds to buy bitcoins.

Even before they took the loan, El Salvador have been buying Bitcoin. So we cannot confirm that they are using the loans they secured to buy Bitcoin. The use of the loan will be strictly monitored by IMF to ensure that the country abides by the terms of the loan.

Then I have a question, that is, the current bitcoin price is so good, why doesn't El Salvador pledge bitcoins to lending platforms to obtain an annualized rate of return, which is about 6% to 9%, and they have 6188 bitcoins, worth 657,911,721USD, and can earn 59 million USD in interest each year.
How much help does this have for the El Salvadoran economy?

Keeping their funds on a centralised platform is very risky.  They will still make good profit it they hodl their coins in their non custodian wallets. The country has a long term plan and is not currently discussing profit margin

[moneystery]

But they borrowed $1.4 billion from the IMF in December last year, so I feel that they used the loan money to buy bitcoins, even though they promised the IMF not to use public funds to buy bitcoins.

that is impossible, because the use of the money is directly supervised by the imf, which means el salvador only uses the money for the original purpose of the debt for fiscal sustainability by reducing public debt and strengthening external and financial buffers. even if they want to buy bitcoin, the funds for that will come from the state budget or other funds, the point is it does not come from the imf or other institutions.

Then I have a question, that is, the current bitcoin price is so good, why doesn't El Salvador pledge bitcoins to lending platforms to obtain an annualized rate of return, which is about 6% to 9%, and they have 6188 bitcoins, worth 657,911,721USD, and can earn 59 million USD in interest each year.
How much help does this have for the El Salvadoran economy?

remember that their goal to accumulate bitcoin is not only to get some profit but more than that they want to increase financial inclusion in the country, make el savador a foreign investment and tourism destination that is friendly to bitcoin, and reduce dependence on the us dollar. meaning el savador without pledging their bitcoins to lending platforms, they have already gained more benefits which are more meaningful than just monthly interest.. moreover by law they cannot put their bitcoins on lending platforms, since it is a national reserve, and it must be well maintained and its use must go through congress.

[₿itcoin]

In the past week (as of june 2 2025), El Salvador has purchased a total of 7 bitcoins, and 30 in the past 30 days, indicating that it continues to implement the "daily purchase" strategy.

But they borrowed $1.4 billion from the IMF in December last year, so I feel that they used the loan money to buy bitcoins, even though they promised the IMF not to use public funds to buy bitcoins.

Then I have a question, that is, the current bitcoin price is so good, why doesn't El Salvador pledge bitcoins to lending platforms to obtain an annualized rate of return, which is about 6% to 9%, and they have 6188 bitcoins, worth 657,911,721USD, and can earn 59 million USD in interest each year.
How much help does this have for the El Salvadoran economy?

You are right, El Salvador easily could gain a 6‑9% reliable yield & earn $40–60 million per year. It is very possible. But those 6-9% return is not totally risk free, is it? there are always regulatory risks caused lending section introducing smart-contract & counterparty.

On the other hand, they are using legal loopholes to buy bitcoin, but IMF is really strict over its conditions, El Salvador must obey some rules for the $1.4 B loan deal. As part of the loan deal, they must freeze public Bitcoin holdings also halt Chivo wallet purchases. So govt are bound by the rules to move those Bitcoins to a lending platform.

Apart from this, Bitcoin Office is a separate entity, and they have its own rules. so the govt can’t officially use those BTC for lending purposes. if I make it simpler, it is actually a separate govt-owned entity, not the main treasury, so it is really foggy that using those coins for lending could run into legal or regulatory issue.

[finaleshot2016]

There are risks to such action and that’s the reason why they’re not doing it. It makes them higher when a bitcoin acts like a reserve for their country. By keeping their BTC untouched, they preserve liquidity and credibility while still benefiting from its appreciation over time like BTC’s narrative, digital gold. This conservative approach helps maintain trust with both citizens and global financial observers. There are risks that technically give you more but with huge risk.

[Asiska02]

And about them ignoring the IMF El Salvador Ignores IMF, Buys More Bitcoin Anyway

IMF needs to be ignored for them to achieve success in what they have intention towards, which is investing in Bitcoin. The IMF have become a stumbling block to many countries as their activities are not helping matters and many countries that have associated themselves so well with this people are almost dying in debts. El Salvador are old enough to make decisions of their own and IMF can’t dictate for them what they will use borrowed money for, it is their own right to use it as they wish. If El Salvador have taken the bold steps to invest in bitcoin, then IMF shouldn't interfere because they’ll just destruct them when they have a target to achieve. The long time benefit is what they’re after, and they’ll surely get there with this steps they’ve taken.

[Zoomic]

Then I have a question, that is, the current bitcoin price is so good, why doesn't El Salvador pledge bitcoins to lending platforms to obtain an annualized rate of return, which is about 6% to 9%, and they have 6188 bitcoins, worth 657,911,721USD, and can earn 59 million USD in interest each year.

Every individual and country has their own way of treating investments, and there are some strict rules they put in place to ensure transparency and security of their assets. I think El Salvador is already aware of these suggestions, but they are simply being cautious about the security risks of potential losses. I believe their Bitcoin holdings are more like a national reserve for them, and they are very strict about holding on to it for the long term. If they choose not to pledge their Bitcoins to lending, it is still in their best interest.

[freedomgo]

There are risks to such action and that’s the reason why they’re not doing it. It makes them higher when a bitcoin acts like a reserve for their country. By keeping their BTC untouched, they preserve liquidity and credibility while still benefiting from its appreciation over time like BTC’s narrative, digital gold. This conservative approach helps maintain trust with both citizens and global financial observers. There are risks that technically give you more but with huge risk.

High risk, that’s true, and no country would willingly take on high risk when it comes to people’s money. If a government is going to invest, it has to be properly studied and should guarantee some level of profit. Sure, they can lend money, but if it’s coming from Bitcoin, that’s double the risk because the price is volatile, and the borrower could lose value and might not be able to repay the loan.

So honestly, I think consistently buying and holding Bitcoin is already a big enough venture for them.
Any other investments should probably stick to low-risk options.

[headingnorth]

Their bitcoin wallet shows a current balance of $655 million.

I think El Salvador deserves a lot of respect for publishing their bitcoin public address.
They could teach others a thing or two about the virtues of transparency and practicing what you preach.

That is what the bitcoin ethos is all about.


https://mempool.space/address/32ixEdVJWo3kmvJGMTZq5jAQVZZeuwnqzo

[HelliumZ]

Bukele’s not flawless, sure, but he’s taken some bold moves. I have a feeling that in the long run, history might judge him a lot more favorably than people do right now.

What the President of El Salvador is doing may be against the people of that country and the IMF at the moment, but it has a positive impact in the long run. Perhaps El Salvador will realize the importance of this far-reaching plan when its holdings of Bitcoin play a huge role in Salvador's economic growth.

[GreatArkansas]

So, the reason why the IMF is talking about El Salvador buying Bitcoin is that El Salvador owed them some money?

But I believe that debt is not solely due to its Bitcoin purchases. It just coincedince for sure that El Salvador stared to adopt of Bitcoin as legal tender in 2021 and these recent Bitcoin purchases from them.

[Marvell1]

Bukele’s not flawless, sure, but he’s taken some bold moves. I have a feeling that in the long run, history might judge him a lot more favorably than people do right now.

What the President of El Salvador is doing may be against the people of that country and the IMF at the moment, but it has a positive impact in the long run. Perhaps El Salvador will realize the importance of this far-reaching plan when its holdings of Bitcoin play a huge role in Salvador's economic growth.

As of today, El Salvador holds around 6200BTC worth $650 million, which is a huge amount but for a country's economy, it is nothing and will not help much.

Not to mention, their economy is in a difficult period with high public debt and risk of default. If bitcoin could help their economy then this would be the best time but as we have seen it hardly helps them and they are forced to borrow money from IMF.


If we want to improve the economy, we need to have the right economic policies, promote increased investment in infrastructure, attract investment and create more jobs. National economies are not like individuals or organizations, so it would be a mistake to focus on just one investment and think it will save them.

[yhiaali3]

My admiration for the Salvadoran government has increased after they ignored IMF criticism and continued to purchase Bitcoin despite the IMF's opposition. This is a good slap in the face to the IMF, to preventing it from interfering in the affairs of the countries it grants loans to.

As for El Salvador investing its Bitcoin on centralized platforms to earn a significant annual return, I disagree with idea even though it could provide a good source of income for the government's treasury. Placing its Bitcoin on a centralized platform contradicts the principle of decentralization and the independence of El Salvador.

[fuguebtc]

My admiration for the Salvadoran government has increased after they ignored IMF criticism and continued to purchase Bitcoin despite the IMF's opposition. This is a good slap in the face to the IMF, to preventing it from interfering in the affairs of the countries it grants loans to.

In fact, they did not completely ignore the IMF's warnings. Previously, they also agreed with the IMF to remove the requirement for businesses to accept Bitcoin and the rule that taxes must only be paid in USD. They keep buying because they take advantage of a legal loophole, they split the Bitcoin Office(ONBTC) into an agency independent of the government and that makes buying bitcoin not violate their agreement with the IMF in name. But the problem is that this is also facing strong opposition in parliament, and everything is still uncertain.

As for El Salvador investing its Bitcoin on centralized platforms to earn a significant annual return, I disagree with idea even though it could provide a good source of income for the government's treasury. Placing its Bitcoin on a centralized platform contradicts the principle of decentralization and the independence of El Salvador.

Bitcoin is considered a national reserve currency in El Salvador and not a speculative asset, so it would be a bad idea to hand it over to a third party just to make a small profit.