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

The International Monetary Fund (IMF) has clarified that since the loan agreement with El Salvador in December 2024, the government has not made any additional cryptocurrency purchases. This information was included in a report published by the international organization, which stated that the government wallet, Chivo, does not adjust its bitcoin reserves according to changes in customer deposits. Since the Chivo wallet does not sell assets, this results in minor discrepancies, no more than 1%, which creates the impression that the country's public sector is accumulating cryptocurrency.

The government of El Salvador plans 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 amount of the package may exceed $3.5 billion. As part of the agreements with the Fund, the Salvadoran authorities have pledged to adjust their current bitcoin strategy. In January, lawmakers made the necessary changes to regulations, which included withdrawing government support for the Chivo wallet, mandating that taxes be paid only in U.S. dollars, limiting transactions with bitcoin for the public sector, and making the acceptance of cryptocurrency payments voluntary for individuals.

Despite the agreement, 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, according to data from the Bitcoin Office, bitcoin inflows continued regularly. On May 19, the authorities added another 1 BTC to the balance, 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.