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IMF Commends El Salvador's Economic Growth While Bitcoin Accumulation Continues

The International Monetary Fund (IMF) has recently delivered commendations to El Salvador for its impressive economic growth trajectory.

According to the IMF, El Salvador's real GDP is projected to grow by 4% in 2025, driven by factors such as record remittances and enhanced investor confidence.

However, under the Extended Fund Facility (EFF) program, the country initially agreed to halt its Bitcoin accumulation strategy in a bid to ensure fiscal stability.

Despite this agreement, data from Arkham indicates that El Salvador has continued to accumulate Bitcoin daily, currently holding approximately 7,508 BTC.

This ongoing support for Bitcoin stands in contrast to the IMF's recommendations, highlighting the tensions between the institution and the Salvadoran government.

President Nayib Bukele's administration is negotiating the sale of its Chivo wallet infrastructure, emphasizing a move towards private sector control over Bitcoin transactions.

El Salvador’s steadfast Bitcoin policy may contribute to a positive macroeconomic outlook, as the country seeks to leverage Bitcoin gains to address its public debt.

The interplay of Bitcoin's fixed supply and rising global demand positions the cryptocurrency in a bullish light, with expectations for significant price movements.

As El Salvador navigates these complex dynamics, the global cryptocurrency market is likely to remain attentive to developments within the nation.

Overall, the IMF's praise juxtaposed with El Salvador's Bitcoin strategy underscores a pivotal moment in the intersection of traditional finance and digital assets.