El Salvador and their bitcoin today

[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?

[Dunamisx]

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.

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.

Had it been this your idea could have helped, they would have taken it right from time, even before considering IMF, but as I've said, they know what they are doing.

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

Check on the El-Salvador thread and know how bitcoin adoption has transformed them in many ways to what they are today, such that so many people who are into crypto are taking El-Salvador a learning ground for bitcoin because it's enabling for anything that has to do with this digital currency.

[henry_of_skalitz]

I do think that they do what's best for them, as it was said, and there are probably regulations in place regarding what you would try to do with said BTCs

[NeuroticFish]

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

I expect that for now it's a good advertising and an investment they can liquidate whenever they want.
I also expect that in the not too far future it will act exactly like the gold deposits central banks have or the investments in other countries' bonds.

[john_egbert]

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

I expect that for now it's a good advertising and an investment they can liquidate whenever they want.
I also expect that in the not too far future it will act exactly like the gold deposits central banks have or the investments in other countries' bonds.

IMF breathes too heavily under their neck to utilize BTC fully and truly - once others will be on the same stairs as El Sal, so to speak, maybe they would have easier times for themselves to express their ideas and concepts as they would like, because as of now, big moves from them means lots of backlash from the institutions that wouldn't like to see BTC thrive.

[BtcAnalyst1]

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?

First, the terms and conditions to obtain a loan, whether from IMF, World Bank, or even other financial grants does not involved, or includes Bitcoin as conditions.

Now, El Salvador is accumulating Bitcoin on a gradual manner because they see Bitcoin as a potential store of value assets class, and they may be distracted by given its Bitcoin reserve for lending or crypto loans despite the high returns in my opinion

Again, El Savido Bitcoin reserve has a long term goals, at this point, accumulation is still ongoing, it is obvious that the economic impact may not have reflected because the purposes of their investment is for the future, though its value has continue to rise.

[Nothingtodo]

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?

There have been hundreds of posts with all sorts of updates on El Salvador's Bitcoin investments. You can learn more and discuss El Salvador's Bitcoin strategic reserve by visiting the thread below. There is no need for you to open a separate thread for this. It is annoying to have multiple threads about the same topic.

El Salvador has become the first country to make Bitcoin legal tender!

[NotFuzzyWarm]

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

[Cryptoprincess101]

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.

If they have been able to acquire 30 bitcoins in 30 days that is to say that they buy an average of 1 bitcoin everyday even if they skip some days without buys, they still make sure to cover up for the days they didn't buy. If they continue with this strategy, they will achieve buying at least 180 bitcoins added with the 30 they have already bought which will sum up 210 bitcoins before the end of the year. That is, if they buy 1 bitcoin each day.

Borrowing money do not completely mean that a country is broke, they just needed extra funds to run their government and before they ventured into daily purchase strategy, it could mean that they have already set the money aside so the money they borrowed from IMF is basically for other things and not to use it to buy bitcoins.

[CryptSafe]

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.

[Alphakilo]

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.

While your idea makes sense to you as a result but to the economist and in practical terms it doesn't sound feasible as something that will work. Think about industries, employment and other things are what will increase a national standard of living.

[freedomgo]

What they borrowed was fiat. If they plan to lend out Bitcoin, the outcome you're thinking of would only work if Bitcoin’s price stays stable or keeps going up. But that’s not how it works as volatility is always a major risk when holding crypto.

That’s why proper risk management is crucial when launching a lending platform that offers this kind of interest to the public.

I don’t know the exact interest rate on the money they borrowed, but I’m pretty sure the IMF wouldn’t want that money to be used for investing in Bitcoin. It’s supposed to go into something low-risk to ensure they can pay their dues consistently.

[kotajikikox]

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.

You are right. People need to read the articles about El Salvador and IMF to really check the details of the deal.

The Salvadoran government, which was the first to recognize bitcoin as an official currency alongside the dollar in 2021, has agreed that the cryptocurrency will only be accepted by the private sector on a “voluntary” basis, the IMF said, adding that bitcoin-related risks “are being mitigated.”

Anyway, IMF and El Salvador know more than anyone the details of their contract so they must know all the ins and the outs more than us and if they think everything is still according to the agreement then we should trust them.

[sunsilk]

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?

We will never know why they didn't do that. But if it's me, I'm going to pay the loan already and keep the profits with me.

Though they have a long-term plans on what they are doing and they know better than most of us do. That's why if they're keeping it, they're paying the debt through other means.

And as for the El Salvador's economy, they're having more crypto tourists I guess and as a legal tender, many are starting to learn about it and getting more conscious about the price of it.

[As-Soon-As]

You will notice that their Bitcoin holding is long-term, in order to hold them for a long time, they will not sell Bitcoin if the price of Bitcoin increases, but they will continue to hold Bitcoin. Not only El Salvador, you can look at Microstrategy, Metaplnet company, there are other companies that want to hold on to their Bitcoin holding and continue to buy Bitcoin for a long time in the future.
Only Bitcoin will play a sufficient role in becoming economically self-sufficient, that is why they are not selling but continuing to buy Bitcoin for a long time.

[Bitcoin_Arena]

Didn't IMF impose sanctions on them before?

But even if they got a loan from IMF, how do we know that they used the funds to buy Bitcoin? Any concrete blockchain proof?

I personally don't believe in the lending platforms stuff. It's just bullshit, and it's anti bitcoin one way or the other. It can't beat just buying Bitcoin and HODling

[Darker45]

I don't think the country used its IMF loan to buy Bitcoin. How that loan money is to be spent is already detailed even before it was approved. Furthermore, the release of the funds isn't done one-time. It will be done in tranches and according to how the projects or programs funded by the funds progress.

The loan agreement didn't ask El Salvador to refrain from buying Bitcoin. The condition was not to continue purchasing Bitcoin with the country's fiscal accounts. With this, El Salvador may still continue stacking Sats provided it isn't using the government's budget.

[BlackBoss_]

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.

IMF under pressure of even bigger foundartions and governments have big concern that they need to slow down Bitcoin adoption growth and its impacts on global economy, central bank systems and people all over the world.

They know that the noise from El Salvador Bitcoin Legal Tender years ago is big, and the snowball already started. They only tried to slow it down even they are aware of unrealistic attempt to beat Bitcoin down from now.

Check El Salvador Bitcoin portfolio there with Arkham
https://intel.arkm.com/explorer/entity/el-salvador

[jackpotmaster]

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.

They are not using this money to buy Bitcoin. It is ridiculous what you are proposing. 30 Bitcoin in 30 days is only $3m. We are talking about a country here, this is a very silly amount of money even for a small country.

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.

High risk for a low reward, and it also hurts Bitcoin in the same process. Terrible advice.

[BALIK]

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.

This is a mandatory agreement if El Salvador wants to borrow money from the IMF. They are not allowed to use public funds or loans to buy bitcoin and if they violate, they could have their aid cut off. And So far, there is no evidence that El Salvador is using borrowed money to buy bitcoin.
Also, it should be remembered that the loan package amounted to more than $1.4 billion but the IMF has only disbursed more than $113 million. The second aid package worth $120 million has not yet been approved, and the IMF is making more requests from El Salvador.
El Salvador depends on the IMF, they have enough power to dictate what El Salvador should and should not do.

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

Check on the El-Salvador thread and know how bitcoin adoption has transformed them in many ways to what they are today, such that so many people who are into crypto are taking El-Salvador a learning ground for bitcoin because it's enabling for anything that has to do with this digital currency.

But the fact is that their economy is still in dire straits even though bitcoin has been adopted in the country for a long time.