Latam Insights Encore: El Salvador's IMF Bitcoin-Fueled Defiance Was a Fugazi

Welcome to Latam Insights Encore, a deep dive into Latin America’s most relevant economic and crypto news from the past week. This edition explores how the Salvadoran government’s confusing communication policy has led to a decline in its standing within the bitcoin community.

Latam Insights Encore: El Salvador Bitcoin Allegiance Is No More, Bitcoin Purchases Confirmed as ‘Shuffling’

The International Monetary Fund’s (IMF) recent disclosure about the Salvadoran bitcoin purchases that weren’t raises flags about two key issues: the genuine commitment that El Salvador has to bitcoin and the inadequate communications policy of the Salvadoran government, spearheaded by President Nayib Bukele.

Since the announcement of the $1.4 billion credit facility deal, the Salvadoran government and President Bukele have been publicly urged to clarify whether the country will continue purchasing bitcoin in defiance of the agreement or halt these transactions.

While Bukele himself stated that they would not stop buying bitcoin, the available information suggests that this claim was based on disinformation intended to maintain a facade of trust regarding his purchasing assertions. Perhaps Bukele did not expect the IMF to address the issue directly, hoping it would remain relevant in the bitcoin community.

Nonetheless, the cat seems to be out of the bag, and this raises more questions about other problems with his administration: if he was able to lie regarding this matter, other issues could also be at least beautified in some way to appear better than they are.

This development also raised questions about the real relevance of bitcoin for El Salvador, as Bukele also bent the knee, withdrawing the legal tender status of bitcoin, and committing to selling or dismantling the Chivo wallet in the future.

In any case, all of this controversy would have been avoided since day one if President Bukele had been clear about the IMF agreement and the nation’s complete compliance with it. Nonetheless, Salvadoran authorities still affirm they keep “purchasing” bitcoin while the community calls them out on social media without receiving a direct denial.

Read more: IMF Bombshell Footnote Solves El Salvador’s Bitcoin Accumulation Mystery

Read more: Is Someone Lying? IMF Confirms El Salvador’s Compliance With Bitcoin Non-Accumulation Commitment