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The IMF has confirmed that El Salvador did not make any new Bitcoin purchases in 2025, contradicting government claims of daily accumulation.
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Despite public statements and visible wallet activity, the increases in Bitcoin holdings were due to internal transfers rather than fresh acquisitions.
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A COINOTAG source highlights that the government’s portrayal of continuous Bitcoin buying was a facade to comply with IMF loan conditions.
IMF report reveals El Salvador halted Bitcoin purchases in 2025, exposing internal wallet transfers as the source of apparent accumulation amid fiscal reforms.
IMF Confirms Halt in El Salvador’s Bitcoin Purchases Amid Financial Oversight
The International Monetary Fund’s July 15, 2025 report, part of its Article IV consultation and Extended Fund Facility (EFF) program review, unequivocally states that El Salvador has not purchased any new Bitcoin since December 2024. This development comes after the country’s controversial Bitcoin adoption and subsequent policy reversal under international financial pressure.
According to the IMF, the public sector’s Bitcoin holdings have remained static since the approval of the $1.4 billion EFF loan. This contradicts President Nayib Bukele’s repeated claims throughout 2025 that the government was acquiring one Bitcoin daily. Public-facing wallet balances appeared to increase, but these were the result of internal wallet consolidations rather than new market purchases.
Dissecting the Illusion: Wallet Transfers vs. Actual Purchases
The IMF report clarifies that the apparent rise in Bitcoin holdings stemmed from movements between government-controlled wallets, creating a misleading impression of ongoing accumulation. Additionally, minor fluctuations in the Chivo e-wallet balances were managed internally without injecting new public funds. This distinction is critical, as it confirms that no taxpayer money was used to buy Bitcoin during this period, aligning with El Salvador’s commitments under the IMF program.
These findings expose a significant transparency gap, as the government’s public narrative diverged sharply from the financial reality. The discrepancy raises questions about the accuracy of official communications and the challenges of maintaining trust in a complex fiscal environment.
Implications for El Salvador’s Bitcoin Strategy and Fiscal Policy
El Salvador made international headlines in 2021 by becoming the first country to adopt Bitcoin as legal tender. However, by January 2025, facing fiscal constraints and lender pressure, the government rescinded Bitcoin’s legal tender status and agreed to cease public-sector Bitcoin purchases. The IMF’s confirmation that no new Bitcoin acquisitions occurred in 2025 underscores the country’s adherence to these revised commitments.
This shift reflects a broader recalibration of El Salvador’s economic strategy, emphasizing fiscal discipline and international cooperation. The move away from Bitcoin purchases signals a pragmatic response to financial realities, balancing innovation with the demands of global financial institutions.
Chivo Wallet Controversies and the Path to Privatization
The IMF report also highlights “minor deviations” related to the Chivo digital wallet system, which has faced scrutiny for operational irregularities. In response, the Salvadoran government has pledged to end public-sector involvement in Chivo by July 2025, aiming to enhance transparency and market confidence.
This planned privatization aligns with IMF-driven reforms promoting fiscal transparency and accountability. Additionally, the government intends to publish detailed financial data for state-owned enterprises and dissolve the public Bitcoin trust, Fidebitcoin. These measures are designed to restore investor trust and stabilize the country’s financial framework.
Looking Ahead: Monitoring El Salvador’s Compliance and Bitcoin Narrative
As the July deadline for Chivo’s privatization approaches, stakeholders within the Bitcoin community and international observers will closely monitor El Salvador’s adherence to its commitments. The contrast between past government narratives and the IMF’s findings underscores the importance of transparent communication and fiscal responsibility in emerging crypto economies.
El Salvador’s experience serves as a case study in the complexities of integrating cryptocurrency into national financial systems, highlighting the tensions between innovation, regulatory oversight, and international financial obligations.
Conclusion
The IMF’s report conclusively reveals that El Salvador did not purchase new Bitcoin in 2025, despite public claims to the contrary. Instead, internal wallet transfers created the illusion of accumulation, reflecting compliance with international financial agreements rather than continued market engagement. As El Salvador moves to privatize the Chivo wallet and enhance fiscal transparency, the global community will watch closely to assess the long-term viability of its Bitcoin strategy within a disciplined economic framework.
