International Monetary Fund affirms no change in Bitcoin assets held by El Salvador
El Salvador's Bitcoin Reserves Remain Stagnant as Per IMF Agreement
The International Monetary Fund (IMF) has maintained its stance on El Salvador's Bitcoin (BTC) holdings, stating that they should not be increased, according to its latest agreement update from May 2025. This decision is part of the $1.4 billion financing deal reached in December 2024, which includes conditions limiting the country's crypto-related activities and requiring voluntary Bitcoin acceptance in the private sector, while phasing out public sector involvement in the Chivo wallet by the end of July 2025.
As per the IMF's May 27 press release, the total amount of Bitcoin held by the government should remain unchanged. This reflects an emphasis on transparency and regulatory rollback, with the Bitcoin Law revised and state-led projects phased out. Despite President Nayib Bukele's earlier announcements of continued Bitcoin purchases, the IMF's review indicates no changes to the final amount held by the state.
Official Salvadoran government data corroborates this, showing no increase in the Bitcoin reserve despite the value surge of approximately $357 million due to Bitcoin's price movements and its legal tender status. However, this gain is from the existing holdings' value increase rather than from new Bitcoin purchases.
El Salvador's Bitcoin reserves currently stand at around 6,189.18 BTC, equating to a value near $675 million as of late May 2025. Although the IMF's deal effectively halts further accumulation to mitigate financial risks related to cryptocurrency volatility and exposure, El Salvador continues to hold a significant amount of Bitcoin.
The current disbursement and future financing from institutions like the World Bank, potentially totaling around $3.5 billion, depend on these key reforms: the removal of Bitcoin's mandatory legal tender status, full disclosure of government and public sector's BTC holdings, and the wind-down of the state-run Chivo Wallet. This agreement reflects a delicate diplomatic balancing act between El Salvador and the IMF, with both parties coexisting without direct contradiction.
- Despite the value surge of Bitcoin, El Salvador's Bitcoin reserves have remained stagnant, adhering to the conditions of the IMF's financing deal.
- The emphasis on transparency and regulatory rollback in El Salvador includes the government's decision to halt further Bitcoin purchases, based on the IMF's conditions and the country's focus on technology and finance in general news.
