Bitcoin News Today: El Salvador Halts Bitcoin Purchases Amid IMF Bailout Terms

El Salvador, once celebrated for its pioneering adoption of Bitcoin as legal tender, has undergone a significant shift in its cryptocurrency strategy. The International Monetary Fund (IMF) report released on 15 July 2025 revealed that the country has not made any new Bitcoin purchases since December 2024. This development comes amidst growing fiscal pressures and the terms of a $1.4 billion IMF bailout package agreed earlier this year.

The IMF's bailout package, approved in February 2025, included strict limits on Bitcoin-related activities in the public sector. These restrictions encompassed limitations on purchases and transactions using Bitcoin. Despite public statements from government officials indicating that Bitcoin buying would continue, the IMF's latest report contradicts this, confirming that there have been no new Bitcoin acquisitions by the government since December 2024. The report also clarified that recent movements in government wallets were internal transfers and not evidence of new investments.

In addition to the halt in Bitcoin purchases, El Salvador has taken further steps to distance itself from its once-ambitious cryptocurrency policies. Bitcoin was quietly removed as legal tender in January 2025, marking a reversal of a landmark policy that had positioned El Salvador as a global leader in national-level crypto adoption. The state-run Chivo Wallet, introduced in 2021, is set to be privatised by the end of July 2025, potentially transferring its operations to private entities. There is also speculation that Fidebitcoin, the government-run Bitcoin trust, may be dissolved. These moves suggest a shift away from centralised government control of crypto-related infrastructure and a turn toward policies that align more closely with IMF requirements.

The changes in El Salvador's Bitcoin strategy reflect a broader pivot from symbolic innovation to fiscal compliance. President Nayib Bukele's government initially drew widespread attention by announcing in November 2022 that El Salvador would purchase one Bitcoin per day. This plan coincided with the formation of the National Bitcoin Office (ONBTC), tasked with driving policy and innovation around the digital currency. However, the country's financial challenges, including inflation and public debt, forced the government to seek IMF assistance. The IMF's terms, which included strict limits on Bitcoin-related activities, have significantly impacted El Salvador's cryptocurrency ambitions.

Despite Bukele's re-election in February 2024, which reflected popular support for his nationalist and pro-innovation stance, economic realities have reshaped the country's priorities. The IMF bailout package, while stabilising the economy, has forced El Salvador to scale back its flagship Bitcoin experiment. Although official channels like the ONBTC maintain that Bitcoin remains a part of the nation’s identity, the freeze on purchases, loss of legal status, and upcoming privatisations indicate a significant shift in policy. These developments underscore a broader pivot: from symbolic innovation to fiscal compliance. What happens next will depend on both global crypto markets and domestic economic performance. But for now, Bitcoin has taken a back seat in El Salvador’s national agenda.