Nayib Bukele Says El Salvador Will Keep Buying Bitcoin Despite IMF Deal, Draws Criticism

El Salvador's President Nayib Bukele on Tuesday reiterated that his country would continue to stack up on Bitcoin despite securing a deal with the International Monetary Fund (IMF) that includes an agreement that the central American nation will stop its BTC purchases throughout the period of the IMF-backed financial package.

Bukele took to X to clarify that El Salvador's Bitcoin reserve will not be halted anytime soon, seemingly contradicting what his country conceded to get funding from the IMF.

Bukele Insists El Salvador Will Pursue Its Bitcoin Strategy

Bukele took to X Tuesday to insist that El Salvador will still continue its BTC purchases that started on a daily basis late in November 2022, during the crypto winter triggered by the collapse of cryptocurrency exchange FTX.

"If it didn't stop when the world ostracized us and most 'bitcoiners' abandoned us, it won't stop now, and it won't stop in the future," he wrote, attaching the post from the president's Bitcoin Office that provided an update on the country's daily BTC buys for its strategic reserve.

Bitcoin maximalists took to the comments section to praise Bukele's decision, including well-known advocate Michael Saylor and Riot Platforms' VP of Research, Pierre Rochard.

However, there were also many BTC holders who demanded transparency from the Salvadoran leader, especially since the IMF on Monday published details about the agreement.

What Did El Salvador Give Up for the IMF Package?

As per the deal to secure $1.4 billion in financing support for El Salvador's government reform plans, the country is expected to:

• Align its Bitcoin project "with Fund policies and international best practices,"
• Make BTC use across the private sector "voluntary,"
• Gradually wind down its crypto e-wallet Chivo,
• Facilitate tax payments only in U.S. dollars,
• Make sure "government purchases of Bitcoin will be prohibited during the program"

The IMF noted that the "use of Bitcoin as means of payment has been minimal" anyway in El Salvador, adding that such minimal use only reflects "Bitcoin's high price volatility and limited trust in the technology."

Bitcoiners Call Out Bukele for Lack of Transparency

Details about the funding package have reached the ears of Bitcoiners who are now demanding that Bukele clarify how El Salvador's Bitcoin reserve will still be pursued under the IMF agreement.

"Can you explain how it will work with the constraints as per the [IMF] agreement?" asked Samson Mow, a former Blockstream executive who even developed El Salvador's Bitcoin bond offering.

John Dennehy, the founder of El Salvador-based BTC education non-profit Mi Primer Bitcoin, asked if the document posted by the IMF was not accurate, at least based on Bukele's insistence.

"Are you not planning to follow it? Because it says that it's stopping, and it's something you already agreed to. Clear communication around this would be very valuable right now," Dennehy pointed out.

Pledditor, a prominent figure in the crypto space, blasted the Salvadoran president for "mocking the people asking questions," saying he should provide honesty and transparency about what he agreed to concede under the IMF deal. "It's not a good look at all that IMF is the one we are learning this all from," he said.

John Carvalho, the CEO of blockchain firm Synonym, urged Bukele to explain in more detail what he actually plans to do with his country's strategic Bitcoin reserve since the IMF's report on the deal is very clear about prohibiting such purchases.

Bukele has yet to respond to concerns around honesty, but as of Tuesday, El Salvador holds 6,101.18 Bitcoin. The country is the largest known holder of Bitcoin, at least based on acquisitions through purchases, not through mining activities or seizures.