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.
El Salvador’s Bitcoin Bet Swells to $644M as Rally Boosts Sovereign Holdings
Bitcoin’s rally has lifted the value of El Salvador’s holdings as the asset continues to prove itself a savvy investment for Central America’s smallest nation. President Nayib Bukele shared a screenshot Sunday showcasing how the country’s Bitcoin holdings were worth over $644 million following an increase of 30 BTC last month. 🤷🏻♂️ pic.twitter.com/05izbAR202 — Nayib Bukele (@nayibbukele) May 19, 2025 Though that total has since retraced slightly to around $637 million, El Salvador’s Bitcoi...
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.
El Salvador is Buying Bitcoin Despite IMF Compliance: How?
El Salvador’s Bitcoin accumulation quietly persists under IMF watch. While President Nayib Bukele’s government formally paused its Bitcoin acquisitions by public sector entities to satisfy International Monetary Fund (IMF) loan conditions, the country's Bitcoin Office continues to quietly expand the country’s national reserves. In the past month, El Salvador added another 32 BTC worth more than $650,000, bringing its total holdings to 6,161.18 BTC valued at roughly $584 million, consistent with...
"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
