Bitcoin News Today: El Salvador's Bitcoin Reserves Unchanged Since December 2024 Loan Agreement

The International Monetary Fund (IMF) has clarified that El Salvador has not made any new Bitcoin purchases since the loan agreement in December 2024. This information was revealed in a report published by the IMF, which stated that the government wallet, Chivo, does not adjust its Bitcoin reserves based on changes in customer deposits. This results in minor discrepancies, creating the impression that the country's public sector is accumulating cryptocurrency.

El Salvador is set to receive a $1.4 billion loan from the IMF under a 40-month program. With additional financing from the Inter-American Development Bank and other regional institutions, the total package may exceed $3.5 billion. As part of the agreement, the Salvadoran authorities have committed to adjusting their Bitcoin strategy. In January, lawmakers made necessary changes to regulations, including withdrawing government support for the Chivo wallet, mandating that taxes be paid only in U.S. dollars, limiting Bitcoin transactions for the public sector, and making the acceptance of cryptocurrency payments voluntary for individuals.

Despite these commitments, Stacy Herbert, head of the National Bitcoin Office, stated that El Salvador continued to build up its crypto reserves at an accelerated pace. At that time, authorities reportedly held 5,980.8 BTC. In May, the IMF warned the government to stop buying cryptocurrency, stating that a staff-level agreement had been reached. However, data from the Bitcoin Office showed that Bitcoin inflows continued regularly, with authorities adding another 1 BTC to the balance on May 19, bringing the reserves to 6,242 BTC.

Attached to the IMF report is a letter of intent addressed to IMF chief Christina Georgieva, dated June 11. In the message, Douglas Pablo Rodriguez Fuentes, President of the Central Bank of El Salvador, and Rogelio Posada Molina, Minister of Finance of El Salvador, assured that "In line with program commitments, the amount of Bitcoin held by the public sector remains unchanged, and we are taking steps to mitigate fiscal risks by reducing our role in the Chivo wallet and rethinking the BTC project."

El Salvador has been mining Bitcoin at a state-owned geothermal power plant since 2021. The initiative was launched on a trial basis about a month after the law recognizing Bitcoin as legal tender came into force. The IMF's clarification on El Salvador's Bitcoin transactions is a step towards ensuring that the adoption of digital currencies is conducted in a manner that promotes economic stability and financial integrity. The IMF's stance underscores the ongoing scrutiny and debate surrounding El Salvador's adoption of Bitcoin as legal tender, a move that has garnered both praise and criticism from the international community.