Bitcoin News Today: El Salvador Halts Bitcoin Purchases Amid IMF Loan Agreement

The International Monetary Fund (IMF) has released a report stating that El Salvador has not purchased any new Bitcoin (BTC) since signing a loan agreement with the IMF in December 2024. This revelation directly contradicts the regular claims made by El Salvador’s Bitcoin Office, which has been asserting that the country is buying one BTC per day. The IMF report highlights that the Chivo Bitcoin wallet, used by El Salvador, does not adjust its Bitcoin reserves to reflect changes in clients’ Bitcoin deposits. This discrepancy has led to the appearance that the public sector is accumulating BTC, when in reality, the wallet does not sell its BTC holdings.

The letter of intent, signed by El Salvador’s central bank president, Douglas Pablo Rodríguez Fuentes, and minister of finance, Jerson Rogelio Posada Molina, confirms that the public sector’s Bitcoin holdings have remained unchanged. The letter also outlines steps being taken to mitigate fiscal risks by reducing the public sector’s role in the Chivo wallet and reframing the Bitcoin project. This move aligns with the commitments made under the loan agreement, which stipulates that El Salvador must scale back its involvement in Bitcoin.

In January 2025, El Salvador’s legislature revised the Bitcoin laws, making the acceptance of BTC as legal tender voluntary and agreeing to stop accumulating BTC using taxpayer money. Despite these revisions, El Salvador’s Bitcoin Office continued to claim that the government was steadily accumulating BTC, which contradicted the terms of the IMF loan agreement. This discrepancy reached a critical point in March when the IMF sent another notice to El Salvador, asking it to stop accumulating BTC under the terms of the loan agreement. Salvadoran President Nayib Bukele responded defiantly, stating that the country would continue to accumulate BTC daily, regardless of the IMF’s demands.

The IMF report has sent shockwaves through the Bitcoin community, as El Salvador has been one of the leading countries to embrace a national strategic Bitcoin reserve. President Bukele’s outspoken stance on stacking the supply-capped digital currency has also garnered significant attention. The report’s findings suggest that El Salvador has been making it appear as though it is continuing to accumulate BTC, despite the IMF’s restrictions. This revelation underscores the complexities and challenges involved in integrating cryptocurrencies into national financial systems and the potential conflicts that can arise between national policies and international financial agreements.