El Salvador Defies IMF Agreement with Continued Bitcoin Purchases

TLDR

• El Salvador continues to purchase Bitcoin despite an agreement with the IMF to halt such activity.
• The country added 21 BTC to its reserves to celebrate the fourth anniversary of its Bitcoin Law.
• On-chain data shows that El Salvador has accumulated approximately 6,318 BTC, worth around $726.8 million.
• The IMF insists that no new Bitcoin has been purchased, claiming the increase is due to wallet transfers.
• Experts raise concerns over transparency, suggesting that El Salvador may be moving older Bitcoin into public wallets.

El Salvador’s government has continued to purchase Bitcoin, despite the International Monetary Fund (IMF) claiming the country would reduce such activity. In 2022, President Nayib Bukele announced plans to buy one Bitcoin daily. The country secured a $1.4 billion loan from the IMF with conditions to halt Bitcoin purchases. However, recent transactions suggest El Salvador is still adding to its Bitcoin reserves.

El Salvador’s Bitcoin Purchases Continue Amid IMF Dispute

El Salvador’s Bitcoin activity contradicts the IMF’s claim that the country has stopped purchasing the cryptocurrency. Despite the agreement with the IMF, which was signed in 2024, the government has recently added 21 BTC to its reserves. The purchase of Bitcoin celebrated the fourth anniversary of El Salvador’s Bitcoin Law, adding $2.3 million worth of the digital asset to government coffers.

On-chain data reveals that El Salvador has approximately 6,318 BTC, worth about $726.8 million. Additionally, in the past week, the country acquired 28 BTC and 51 BTC over the last 30 days. This contrasts with the IMF’s statement, which insists that no new Bitcoin has been purchased. Meera Louis, a communications officer at the IMF, clarified, “We can confirm that the total amount of government-owned Bitcoin has not increased.”

Questions Over Transparency and Source of Bitcoin Transactions

The transparency of El Salvador’s Bitcoin purchases has raised questions. Crypto analytics firm Bubblemaps argues that tracking the exact date of Bitcoin purchases is difficult. They suggest the country may have purchased the digital currency earlier and then transferred it into public wallets later.

Some experts, such as James Bosworth, founder of Hxagon, have criticized the lack of transparency in these transactions. Bosworth stated, “There should have been more transparency with the buys from the beginning.” He argued that Bukele is likely moving assets around instead of purchasing Bitcoin on the open market. These movements, he suggests, may resemble a government-backed wash trade.

Despite the IMF’s conditions, President Bukele has remained defiant. In March, he reaffirmed his commitment to Bitcoin purchases, stating that the country would continue its Bitcoin strategy. “If we didn’t stop when the world ostracized us, we will not stop now,” he said.

The debate over El Salvador’s Bitcoin activities has only intensified. The IMF remains adamant that the country must reduce its reliance on Bitcoin and emphasize that El Salvador must comply with the conditions outlined in their agreement.

Yet, the recent Bitcoin purchases suggest that El Salvador is ignoring these conditions. President Bukele’s actions continue to challenge the IMF’s authority over the country’s financial decisions. Only time will tell if El Salvador’s Bitcoin strategy will ultimately succeed or face more resistance.

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