A new development within El Salvador’s ongoing relationship with the IMF has generated a stark contrast between President Nayib Bukele’s advocacy for expanding Bitcoin holdings and the IMF’s request to freeze these investments. The IMF confirmed a staff-level agreement, securing a $1.4 billion loan package as part of an Extended Fund Facility. This deal came following an agreement in 2024 for El Salvador to reduce its Bitcoin activity. In return, the IMF provided a financing plan that includes a 40-month loan and could potentially reach $3.5 billion from both the IMF and other international lenders. The IMF’s latest demand underscores the continued pressure on El Salvador to adhere to traditional financial norms despite Bukele’s vocal advocacy for nationwide Bitcoin adoption.