IMF Report Clarifies El Salvador’s Bitcoin Activities
The International Monetary Fund (IMF) recently released a report about its ongoing loan agreement with El Salvador, containing some revelations around the country’s engagement with Bitcoin. It pointed out that the Central American nation has not procured any more Bitcoin since it approved the agreement in December 2024.
Chivo Wallet and Bitcoin Reserves
El Salvador’s Chivo Bitcoin wallet, an innovative solution developed to handle the country’s Bitcoin transactions, does not make adjustments to its Bitcoin reserves as users make deposits. According to the IMF report, this is because Chivo does not sell its Bitcoin. This peculiar arrangement often leads to minor discrepancies, erroneously giving a picture of El Salvador’s public sector stocking up on Bitcoin.
El Salvador’s Response to the IMF Report
El Salvador’s Central Bank president, Douglas Pablo Rodriguez Fuentes, and the Minister of Finance, Jerson Rogelio Posada Molina, validated the information from the IMF report in a letter of intent. Although attempts were made to reach out to El Salvador’s Bitcoin Office and the National Commission of Digital Assets for their reactions to the report, there have been no responses at the time of this report.
El Salvador and the IMF Loan Deal
El Salvador and the IMF inked a $1.4 billion loan agreement in December 2024. A condition for the loan required El Salvador to reduce its Bitcoin involvement, a move that has had significant implications. In January 2025, the country’s legislature made changes to the Bitcoin laws, making Bitcoin acceptance as legal tender optional. Furthermore, the country committed to halt any accumulation of Bitcoin funded by taxpayers’ money.
Contradictions in the IMF Deal
Contrary to the agreement, the El Salvador Bitcoin Office consistently announced that the government continued its steady amassing of Bitcoin, blatantly ignoring the parameters of the IMF deal. The conflict reached a climax in March when the IMF requested El Salvador to cease its Bitcoin accrual based on the loan agreement’s terms of service.
President Bukele’s Defiance
The country’s President, Nayib Bukele, firmly stood his ground in reaction to the request, declaring the country’s intent to continue its daily accumulation of Bitcoin. In a statement, he said: “No, it’s not stopping. If it didn’t stop when the world ostracized us and most bitcoiners abandoned us, it won’t stop now, and it won’t stop in the future.”
The IMF Report Impact
The IMF report made waves in the Bitcoin community and stirred up a lot of interest due to El Salvador’s pioneering role in embracing Bitcoin as a national strategic reserve. President Bukele’s vocal stand on persevering in stacking the supply-capped digital currency added to the intrigue. El Salvador continues its forward march, inspiring other nations that are considering taking a similar route in incorporating Bitcoin into their financial frameworks.
El Salvador and Argentina
In related news, El Salvador has also been proactively engaged in initiatives aimed at promoting Bitcoin in the South American region. The country’s national Bitcoin chief has been making significant efforts to establish a Bitcoin presence in Argentina, further showcasing the nation’s commitment to the cryptocurrency agenda.
