Key Takeaways
- The letter confirms that, according to the phrases of the IMF program, the federal government has not added to its Bitcoin holdings for the reason that deal was signed in December.
- The federal government has additionally reportedly dedicated to lowering the general public sector’s involvement in Bitcoin-related actions, together with a scaled-back function in managing the state-run Chivo digital pockets.
El Salvador has not made any new Bitcoin purchases since December 2024, in response to a report printed Tuesday by the Worldwide Financial Fund (IMF). The replace follows months of hypothesis over whether or not the nation was persevering with to build up the crypto after coming into right into a $1.4 billion mortgage settlement with the IMF earlier this yr.
The IMF report highlights a pause in Bitcoin acquisitions, citing a letter of intent signed by El Salvador’s central financial institution president, Douglas Pablo Rodríguez Fuentes, and finance minister, Jerson Rogelio Posada Molina. The letter confirms that, according to the phrases of the IMF program, the federal government has not added to its Bitcoin holdings for the reason that deal was signed in December. The federal government has additionally reportedly dedicated to lowering the general public sector’s involvement in Bitcoin-related actions, together with a scaled-back function in managing the state-run Chivo digital pockets.
El Salvador wrote historical past in 2021 by turning into the primary nation to undertake Bitcoin as authorized tender, beneath the management of President Nayib Bukele. The transfer was hailed by crypto advocates globally, and in 2022, Bukele introduced a plan to buy one Bitcoin per day utilizing public funds. This coverage was accompanied by the creation of a Nationwide Bitcoin Workplace (ONBTC)
Nevertheless, mounting fiscal stress, inflation, and debt ranges compelled the federal government to hunt monetary help from the IMF. The ensuing Prolonged Fund Facility, finalized in early 2025, included provisions that restricted Bitcoin-related transactions within the public sector. Whereas authorities representatives publicly claimed that each day purchases would proceed, the IMF’s findings seem to contradict these statements.
The report additionally notes discrepancies associated to the Chivo pockets. The IMF states “Will increase in bitcoin holdings within the Strategic Bitcoin Reserve Fund mirror the consolidation of bitcoin throughout varied government-owned wallets.”
Though customers may even see will increase of their Bitcoin balances, the platform doesn’t modify the federal government’s reported reserves accordingly. For the reason that authorities doesn’t actively promote its Bitcoin holdings, these accounting variations led some to mistakenly consider that the state was nonetheless accumulating belongings.
In January 2025, El Salvador’s legislature amended its Bitcoin legislation, eradicating the requirement for companies to simply accept the cryptocurrency. The reforms additionally curtailed the usage of taxpayer cash for additional Bitcoin investments.
Regardless of the IMF’s affirmation and authorized adjustments, President Bukele has remained publicly defiant. In March, he posted on social media affirming the nation’s continued ideological dedication to Bitcoin, though official information not helps claims of ongoing authorities purchases.
