EddieJayonCrypto
28 May 25
El Salvador purchased eight more bitcoins despite the IMF urging a freeze on government crypto acquisitions under a $1.4 billion loan deal. The IMF praised El Salvador's economic reforms and macroeconomic stability but insisted on no increase in bitcoin holdings and a July deadline to reduce public ...
El Salvador continues purchasing bitcoins through its Bitcoin Office despite IMF demands to freeze government crypto acquisitions under a $1.4 billion loan agreement. The country added eight more bitcoins recently, bringing its total holdings to nearly 6,200 BTC, valued at over $674 million. The IMF praised El Salvador's economic reforms and macroeconomic stability but insisted on no increase in bitcoin holdings and set a July deadline to reduce the public sector's involvement in the state-run Chivo wallet. Although El Salvador's government paused direct Bitcoin purchases to comply with the IMF loan terms, the Bitcoin Office operates outside the fiscal sector, continuing daily purchases without violating criteria. IMF Western Hemisphere Department Director Rodrigo Valdes confirmed the country's compliance regarding the non-accumulation of Bitcoin within the fiscal sector. President Nayib Bukele maintains Bitcoin’s role in the economy, even after reforms removed its mandatory legal tender status, making it optional to meet IMF conditions. This situation creates a subtle standoff between El Salvador and the IMF, balancing economic reform commitments with the government’s pro-Bitcoin agenda. Besides the $1.4 billion IMF package, the broader agreement aims to unlock an additional $2 billion in development funds and support efforts to manage El Salvador’s public debt, which hit 85% of GDP last year.