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Brazil's US Conflict Escalates as IMF Confirms El Salvador's Bitcoin Stance

Recent developments have highlighted a growing tension between Brazil and the U.S., while also shedding light on El Salvador's controversial Bitcoin practices.

The International Monetary Fund (IMF) has clarified that El Salvador has not purchased additional Bitcoin since February 2025, challenging President Nayib Bukele's previous claims of daily acquisitions.

This revelation comes amid a financing agreement with the IMF aimed at reducing Bitcoin-related activities in the country.

The Salvadoran government clarified that any reported increases in Bitcoin holdings are due to internal consolidations rather than new purchases.

Conversely, blockchain data shows consistent transfers of Bitcoin, leading to confusion and contrasting narratives from the government and the President's office.

Amid this backdrop, the trade conflict between the U.S. and Brazil is on the verge of escalating, primarily due to the former's imposition of steep tariffs on Brazilian imports.

This trade dispute has further intensified with actions taken against Brazilian judicial figures involved in the trials of former President Jair Bolsonaro.

Both governments are now considering retaliatory measures, which could significantly impact the regional economy.

As Brazil looks to impose higher taxes on U.S. tech firms, the ongoing friction raises concerns over the future of trade relations.

In the crypto sphere, both El Salvador's Bitcoin strategy and the evolving geopolitical tensions reflect the complex dynamics influencing Latin America's financial landscape.