In brief
- El Salvador added eight more Bitcoin to its reserve despite IMF warnings
- An IMF agreement struck on Tuesday included provisions to curb crypto holdings
- It also wants El Salvador to wind down its involvement in a state-run crypto wallet
El Salvador purchased eight additional bitcoins on Tuesday despite the International Monetary Fund (IMF) reiterating its push for the country to freeze government crypto acquisitions under the terms of a $1.4 billion loan deal.
The new bitcoin acquisition, announced by El Salvador’s Bitcoin Office, came shortly after IMF staff and El Salvadoran authorities reached a staff-level agreement on the first review of the 40-month Extended Fund Facility (EFF). The review, tied to economic reforms, praised El Salvador for meeting most targets and improving macroeconomic stability.
The IMF noted progress on structural benchmarks, fiscal reforms, and inflation control. However, it also warned it would continue efforts to ensure the total bitcoin held in government wallets remains unchanged. It reaffirmed a July deadline for winding down public sector involvement in the state-run Chivo wallet.
The IMF has stated as such several times before. But it is having little success. The country now holds nearly 6,200 BTC worth more than $674 million, according to Arkham Intelligence.
Despite earlier commitments to limit state involvement in crypto activities, its Bitcoin Office has continued to expand national reserves with regular purchases.
This sets up a quiet standoff between the IMF and President Nayib Bukele’s administration. While the government formally paused direct Bitcoin purchases to comply with the loan deal, the Bitcoin Office operates outside the defined fiscal sector.
The legal distinction allows it to continue small daily acquisitions without violating performance criteria.
“In terms of El Salvador, let me say that I can confirm that they continue to comply with their commitment of non-accumulation of Bitcoin by the overall fiscal sector, which is the performance criteria that we have,” IMF Western Hemisphere Department Director Rodrigo Valdes said during a press briefing in April for the Regional Economic Outlook, as previously reported by Decrypt.
President Bukele, who has made Bitcoin central to his global image, has mocked suggestions that the policy would end.
Recent legal reforms stripped Bitcoin of mandatory legal tender status but retained it as an optional currency, satisfying IMF conditions while preserving Bukele’s narrative.
Beyond the $1.4 billion IMF package, the broader agreement is expected to unlock another $2 billion in development bank financing and support El Salvador’s efforts to manage a public debt load that reached 85% of the country’s GDP last year.
Edited by Sebastian Sinclair
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
