Market News

IMF Report Disrupts Narrative: El Salvador's Bitcoin Purchases Halted

El Salvador has reportedly ceased any new Bitcoin acquisitions since February 2025, as indicated by a recent International Monetary Fund (IMF) report.

This revelation contradicts President Nayib Bukele's earlier assertion that the government was continuously buying one Bitcoin each day.

The IMF's findings emerged during the first formal review of El Salvador's Bitcoin initiative, conducted after the nation secured a $1.4 billion loan agreement in December 2024.

Furthermore, the report highlighted a significant shift in El Salvador's approach by scaling back its public involvement with Bitcoin, particularly in relation to the state-operated Chivo wallet.

While the Chivo wallet will remain functional, it will no longer be operated with government funds and is set to be privatized by July 2025.

On-chain activity has been misinterpreted, according to the IMF, with movements largely reflecting internal asset transfers rather than new state-backed purchases of Bitcoin.

With El Salvador holding approximately 6,244 BTC valued at around $742 million, the IMF emphasized the need for the country to regard Bitcoin purely as a financial asset, not as a currency.

As the state’s Bitcoin policy evolves, amendments aligning with the IMF's stipulations have been approved to lower fiscal risk and enhance transparency.

In contrast, while El Salvador insists on continuing its Bitcoin accumulation, the IMF's assessment suggests a halt, raising questions about the country's official stance on its cryptocurrency strategy.

The next reviews scheduled by the IMF in September and December 2025 will be crucial in determining the trajectory of El Salvador's controversial Bitcoin operations.