PANews reported on May 28 that El Salvador's Bitcoin Office announced on Tuesday the purchase of 8 additional Bitcoins, bringing the country's reserves to nearly 6,200 (valued at approximately $674 million). This move came just hours after the International Monetary Fund (IMF) completed its first review of the country's $1.4 billion loan program. In the review, the IMF requested that El Salvador stop increasing its government-held crypto assets and set a deadline to close the state-owned crypto wallet Chivo before July. However, the country continued to make small daily purchases by utilizing a regulatory framework that keeps the Bitcoin Office separate from the Finance Ministry. President Bukele had previously revoked the mandatory legal tender status of Bitcoin but still maintains its optional currency attribute.
This review will enable El Salvador to obtain an additional $2 billion in development bank financing to help address public debt that accounts for 85% of GDP. Rodrigo Valdes, director of the IMF's Western Hemisphere Department, stated in April that El Salvador's 'Finance Ministry has generally complied with the commitment not to increase its Bitcoin holdings.'
