Bitcoin News Today: El Salvador Halts Bitcoin Purchases Contradicting President Bukele

El Salvador has ceased purchasing Bitcoin, contradicting the assertions made by President Nayib Bukele. According to a report submitted to the International Monetary Fund (IMF), the last Bitcoin acquisition by El Salvador occurred in February 2025. This revelation comes from the Central Bank President, Douglas Pablo Rodríguez Fuentes, and Finance Minister Jerson Rogelio Posada Molina, who informed the IMF that all Bitcoin purchases have halted since that date. The transfers mentioned by President Bukele are actually consolidations of existing holdings rather than new acquisitions.

Rodríguez Fuentes clarified that "The stock of Bitcoins held by the public sector remains unchanged" since February 2025. This discrepancy between the government's claims and the actual financial activities raises questions about El Salvador's financial strategy and its global standing. As the first nation to adopt Bitcoin as legal tender, El Salvador is under scrutiny, particularly regarding its compliance with IMF financing terms. Adherence to these terms is crucial for the continuation of the $1.4 billion funding program.

Industry observers note that the adoption of Bitcoin as legal tender has not resulted in significant market changes. However, aligning with IMF requirements necessitates greater transparency and consistency in reporting fiscal activities. Stakeholders are skeptical of El Salvador's financial approach, especially given President Bukele's claims of ongoing Bitcoin purchases. The IMF demands stringent reporting and oversight to ensure transparency and safeguard against potential financial risks.

This situation underscores the complexities involved when cryptocurrencies intersect with public sector funds. Potential consequences for El Salvador include regulatory and financial repercussions if discrepancies continue. Historical trends indicate that transparency and regulatory conformity are essential for sustaining international collaborations. Proactive alignment with IMF standards could ensure stable financial relations and maintain public trust.

In January 2025, El Salvador's legislature revised the Bitcoin laws, making the acceptance of Bitcoin as legal tender voluntary and agreeing to stop accumulating Bitcoin using taxpayer money. Despite this legislative change, El Salvador’s Bitcoin Office continued to assert that the government was steadily accumulating Bitcoin, which contradicted the terms of the IMF loan agreement. The IMF sent another notice to El Salvador in March, asking it to stop accumulating Bitcoin under the terms of the loan agreement. President Bukele responded defiantly, stating that the country would continue accumulating Bitcoin daily.

The IMF report has sent shockwaves through the Bitcoin community, as El Salvador is 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 been a significant factor in the country’s Bitcoin strategy. The IMF’s revelation that El Salvador has not been purchasing new Bitcoin since February contradicts the government’s claims and highlights the tension between the country’s Bitcoin ambitions and its financial obligations.