International

El Salvador hasn’t bought Bitcoin since signing loan deal, IMF says

Posted on by Minakshi




IMF Report: El Salvador’s Bitcoin Holdings Remain Static Since Loan Agreement



IMF Report: El Salvador’s Bitcoin Holdings Remain Static Since Loan Agreement

A recent report by the International Monetary Fund (IMF) has raised questions about El Salvador’s ongoing Bitcoin strategy. The report indicates that the Central American nation has not acquired any new Bitcoin (BTC) since entering into a loan agreement with the IMF in December 2024.

Details from the IMF Report

The IMF’s assessment of El Salvador’s economic situation included a closer look at its Bitcoin holdings and the operations of its state-backed Chivo wallet. The report highlights specific points:

  • El Salvador’s Chivo Bitcoin wallet apparently “does not adjust its Bitcoin reserves to reflect changes in clients’ Bitcoin deposits.”
  • Chivo is said to have a policy of not selling its BTC, which has led to “minor” discrepancies that created the illusion of Bitcoin accumulation by the public sector.

Letter of Intent

The IMF report included a letter of intent signed by key El Salvadorian financial figures, including the president of the central bank, Douglas Pablo Rodríguez Fuentes, and the minister of finance, Jerson Rogelio Posada Molina. This letter provided further confirmation of the details outlined in the IMF’s findings.

Implications for El Salvador’s Bitcoin Strategy

This revelation comes amidst considerable interest in El Salvador’s adoption of Bitcoin as legal tender. The country’s initial enthusiasm for Bitcoin led to significant purchases, and the government had previously announced plans to purchase 1 BTC per day.

The halt in Bitcoin purchases, as suggested by the IMF report, could have important implications for El Salvador’s financial stability and its relationship with international lending institutions. The report will likely fuel further debate about the viability and risks associated with adopting Bitcoin as a national currency.

Summary:

  • IMF report states El Salvador has not bought Bitcoin since December 2024.
  • Chivo wallet’s operational practices create the appearance of BTC accumulation.
  • The halt in purchases impacts El Salvador’s financial strategy and relationship with the IMF.
Key Takeaways:

  • El Salvador’s Bitcoin buying spree may have been put on hold following a crucial loan agreement.
  • The operational mechanics of the Chivo wallet raise concerns about transparency in Bitcoin reserve management.
  • The IMF report highlights the ongoing scrutiny of El Salvador’s Bitcoin experiment and its implications for international finance.
  • The stability of El Salvador’s financial system might be affected by this hold on further BTC aquisition.