El Salvador Stops Daily Bitcoin Purchases, IMF Report Reveals

El Salvador has halted daily Bitcoin purchases since February 2025, contradicting President Nayib Bukele's claim of acquiring one Bitcoin per day. The move appears linked to a December 2024 deal with the IMF, under which the country secured a $1.4 billion loan and agreed to suspend all public-sector activity involving Bitcoin. The government has removed Bitcoin as legal tender and privatized the Chivo digital wallet. The halted purchases have raised concerns among crypto advocates and critics, with some seeing it as proof of unsustainable adoption and others arguing for pragmatic adaptation.

El Salvador has halted its daily Bitcoin purchases since February 2025, contradicting President Nayib Bukele's claim of acquiring one Bitcoin per day. This revelation was disclosed in a recent IMF report, which directly contradicts the country's official narrative. The move appears linked to a December 2024 deal with the IMF, under which El Salvador secured a $1.4 billion loan and agreed to suspend all public-sector activity involving Bitcoin.

The IMF's July 15 Article IV consultation report states that El Salvador has not made any new Bitcoin purchases since the Extended Fund Facility was approved. Instead, the perceived growth in Bitcoin holdings was the result of internal wallet consolidations involving Bitcoin already held by the government [1]. The IMF report indicates that the country's Bitcoin reserve, which was previously claimed to hold about 6,242 BTC, is likely the result of these consolidations rather than new purchases [2].

In response to the IMF's conditions, El Salvador has taken several significant steps. The government removed Bitcoin as legal tender in January 2025 and has been working to privatize the Chivo digital wallet and dismantle the state-backed Fidebitcoin trust [3]. These moves are aimed at boosting fiscal transparency and keeping the Extended Fund Facility on track.

The halted purchases have raised concerns among crypto advocates and critics. Some see the move as evidence of an unsustainable Bitcoin adoption strategy, while others argue that it reflects pragmatic adaptation to international financial pressure [2]. The discrepancy between the government's public messaging and the financial disclosures in the IMF report has also raised questions about the government's credibility.

The coming weeks will show whether El Salvador follows through on its commitments to unwind the Chivo system and dissolve Fidebitcoin by July 31, 2025. These steps are crucial for resetting the country's narrative and rebuilding trust with both domestic and international stakeholders.

References:
[1] https://www.tradingview.com/news/the_block:5b849f5d9094b:0-el-salvador-hasn-t-bought-bitcoin-since-february-finance-chiefs-tell-imf-contradicting-bukele-administration/
[2] https://financefeeds.com/el-salvador-quietly-halts-daily-bitcoin-purchases-imf-report-reveals/
[3] https://bitcoinist.com/imf-bombshell-el-salvador-didnt-buy-bitcoin-in-2025-after-all/