El Salvador has once again challenged the International Monetary Fund’s (IMF) stance on cryptocurrency acquisitions, making a fresh Bitcoin purchase shortly after concluding a key review tied to its $1.4 billion loan agreement.
New Acquisition Follows IMF Staff-Level Agreement
The latest Bitcoin purchase, confirmed by El Salvador’s Bitcoin Office, came just after the IMF and Salvadoran officials reached a staff-level agreement on the first review of the 40-month Extended Fund Facility (EFF). While the IMF acknowledged the country’s progress on fiscal reforms, macroeconomic stability, and inflation control, it reiterated that "efforts will continue" to ensure the government’s total Bitcoin holdings remain unchanged.
Despite these repeated calls, the Central American nation increased its national Bitcoin reserves to approximately 6,200 BTC, valued at over $674 million according to data from Arkham Intelligence. The purchase signals the administration’s intent to persist with its cryptocurrency strategy, notwithstanding ongoing scrutiny from the IMF.
Legal Loophole Enables Bitcoin Strategy
While one of the original loan conditions prohibited "voluntary accumulation of bitcoin by the public sector," El Salvador appears to have sidestepped this requirement through a legal distinction. The government’s Bitcoin Office, which handles the country’s crypto acquisitions, operates outside the official fiscal sector. This separation allows it to continue small, routine purchases without technically breaching the IMF’s performance criteria.
In April, IMF Western Hemisphere Department Director Rodrigo Valdes had stated,
"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 Maintains Deadline for Crypto Reforms
Alongside its calls to halt government Bitcoin purchases, the IMF reaffirmed a July deadline for reducing public sector involvement in the state-run Chivo wallet, another key component of El Salvador’s crypto ecosystem. The IMF has insisted on curbing official crypto-related activities to minimize financial risks and align with the terms of the loan program.
Bukele Unwavering in Bitcoin Strategy
President Bukele, who has made Bitcoin central to his administration’s international identity, remains openly defiant, dismissing suggestions that external pressure or market sentiment would alter the government’s Bitcoin policy.
Even after legal reforms earlier this year removed Bitcoin’s mandatory legal tender status, the cryptocurrency remains an optional payment method in El Salvador. The adjustment satisfied IMF loan conditions while allowing Bukele to continue promoting Bitcoin’s role in the nation’s financial framework.
As the IMF presses for stricter controls, El Salvador’s leadership appears intent on preserving its crypto strategy, quietly expanding its holdings while navigating around formal fiscal constraints.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
