El Salvador continues to quietly increase its Bitcoin reserves even after securing a $1.4 billion loan from the IMF, which has discouraged further accumulation of the cryptocurrency.
According to the country's Bitcoin office, the government's treasury wallet now holds 6,209 Bitcoins - an increase of 240 coins since December 19, 2024, the day the IMF deal was completed. President Nayib Bukele's strategy, launched in 2022, of issuing one Bitcoin daily, appears to continue despite the official restrictions imposed on the loan.
The International Monetary Fund agreement required El Salvador to eliminate Bitcoin's legal tender status and halt public purchases. However, the country still maintains its position - at least technically.
Rodrigo Valdez, the IMF director for the Western Hemisphere, stated during a press briefing on April 26: "El Salvador continues to commit to its pledge not to accumulate Bitcoin by the public financial sector."
Observers point to a margin of maneuver in crafting the agreement. Blockchain advisor Andy Leanne stated, "The flexible interpretation of the IMF indicates that these purchases could be made through non-public entities or reclassified properties. This allows the country to maintain its supportive stance on Bitcoin while continuing to receive IMF funds."
While the treasury portfolio grows, cryptocurrency remittances tell a different story. According to the Central Reserve Bank of El Salvador, Bitcoin-backed remittances fell by 44.5% in the first quarter of 2025 compared to the same period last year. The total remittances sent via cryptocurrencies amounted to only $16 million, down from $28.3 million the previous year, representing just 0.52% of total incoming remittances.
This decline indicates that everyday adoption of the currency remains limited, even as the government doubles its efforts in the use of Bitcoin.
El Salvador achieved a historic milestone in September 2021 by becoming the first country to adopt Bitcoin as legal tender. However, the country's growing cryptocurrency sector has faced international scrutiny.
In December 2024, El Salvador reached an agreement with the International Monetary Fund (IMF) to restrict certain local Bitcoin-related activities in exchange for a $1.4 billion loan through the IMF's extended fund facility. With additional support from the World Bank and regional development banks, the total financial package exceeds $3.5 billion.
The IMF has been outspoken against the Bitcoin law in El Salvador since its inception in September 2021. It expressed concerns about customer confusion when choosing between Bitcoin and fiat currencies and warned that these dual pricing systems could lead to inefficiencies.
While President Nayib Bukele's administration continues to accumulate Bitcoin, polls indicate that the majority of Salvadorans do not use the cryptocurrency in their transactions. According to a survey conducted in October 2024, 92% of citizens reported not using Bitcoin, an increase from 88% in a similar survey conducted the previous year.
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