International Monetary Fund (IMF) scrutiny reveals that no public funds in El Salvador have been used to buy additional Bitcoin in 2025, contradicting President Bukele’s claims.
In a revealing update on July 15, 2025, the IMF disclosed that El Salvador has made zero new Bitcoin purchases since February, despite the government’s persistent narrative that it was acquiring 1 Bitcoin per day.
📉 Government Misrepresentation
Official correspondence from President Bukele’s Central Bank President Douglas Rodríguez Fuentes and Finance Minister Jerson Posada Molina confirms that the state’s Bitcoin reserves have remained constant. This contradicts social media claims by the government’s Bitcoin Office.
The IMF explains that any on-chain movements were internal transfers, not new purchases. Bitcoin was being shuffled between government-controlled cold and hot wallets, such as the Strategic Bitcoin Reserve Fund and the Chivo e-wallet. These internal adjustments had misled analysts and the public, creating the false impression of accumulation.
🏦 Shift in Policy: Privatizing Chivo
As part of the IMF arrangement tied to a US $1.4 billion Extended Fund Facility, El Salvador agreed to:
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Privatize the government-run Chivo wallet by July 2025,
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End public-sector involvement in its operations and funding.
The IMF welcomed these steps as they reduce fiscal exposure and enhance transparency in the nation’s digital asset strategy.
💰 Strategic Reserve Status
Currently, the Salvadoran government holds approximately 6,100–6,244 BTC, valued around US $550–742 million. The IMF confirmed that any fluctuation in those holdings stems from internal reallocations, not fresh acquisitions.
Despite at least one Bitcoin announced via the Strategic Reserve, the IMF emphasizes this doesn’t violate the loan agreement since it’s not part of public-sector accumulations at large.
🤝 IMF Conditions and Broader Implications
Under the loan terms, El Salvador also:
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Made Bitcoin acceptance voluntary for businesses (removed as mandatory legal tender),
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Stopped accepting Bitcoin for tax payments,
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Scaled back public involvement in Bitcoin-related services
These moves aim to stabilize the economy, enhance financial integrity, and ensure responsible governance.
However, President Bukele, addressing the IMF in March, staunchly stated:
“No, it’s not stopping. If it didn’t stop when the world ostracized us … it won’t stop now.” Cointelegraph+1Tạp Chí Bitcoin+1Council on Foreign Relations+2Mitrade+2Cointelegraph+2
🔍 Lessons & Warnings
El Salvador’s experience highlights a larger cautionary tale: sovereign Bitcoin holdings carry significant risks. The IMF has consistently warned countries to treat BTC like a volatile financial asset, not reliable currency.
Analysts point out:
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Bitcoin’s price swings are enormous,
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Regulatory safeguards and transparency are critical,
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Overreliance on crypto can imperil macroeconomic stability.
🔄 Summary
| Aspect | Reality Based on IMF Review |
|---|---|
| New Bitcoin purchases in 2025 | None (zero public funding) |
| Governor’s claim “1 BTC/day” | Debunked |
| Bitcoin activity on-chain | Only internal rebalancing |
| Chivo wallet | To be privatized by July 2025 |
| Bitcoin legal tender status | Optional for businesses; not for taxes |
| Bitcoin holdings | Constant around ~6,100 BTC |
This story illustrates the widening gap between political messaging and economic reality. Under IMF pressure, El Salvador has shifted away from aggressive crypto ambitions toward greater fiscal caution and transparency—a model other countries eyeing digital currency adoption should study closely.
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