Since the agreement with the IMF on the loan program in December 2024, the government of El Salvador has not made any additional cryptocurrency purchases. This information comes from a report published by the international organization. According to the document, the government wallet, Chivo, ”does not adjust its bitcoin reserves according to changes in customer deposits.” Since the Chivo wallet does not sell assets, this results in ”minor” discrepancies (no more than 1%). According to the Fund’s experts, this creates the impression that the country's public sector is accumulating cryptocurrency. The government of the Latin American country plans to receive a $1.4 billion loan from the IMF under a 40-month program. Taking into account additional financing from the Inter-American Development Bank and other regional institutions, the total amount of the package may exceed $3.5 billion. As part of the agreements with the Fund, the Salvadoran authorities have pledged to adjust their current bitcoin strategy. As early as January, lawmakers made the necessary changes to regulations, which included: Withdrawing government support for the Chivo wallet Mandating that taxes be paid only in U.S. dollars Limiting transactions with bitcoin for the public sector Making the acceptance of cryptocurrency payments voluntary for individuals However, according to Stacy Herbert, head of the National Bitcoin Office, El Salvador continued to build up its crypto reserves ”at an accelerated pace,” despite the agreement. At that time, authorities reportedly held 5,980.8 BTC. In May, the IMF warned the government to stop buying cryptocurrency, stating that a staff-level agreement had been reached. At the same time, according to data from the Bitcoin Office, bitcoin inflows continued regularly. On May 19, the authorities added another 1 BTC to the balance, bringing the reserves to 6,242 BTC. Attached to the IMF report is a letter of intent addressed to IMF chief Christina Georgieva, dated June 11. In the message, Douglas Pablo Rodriguez Fuentes, President of the Central Bank of El Salvador, and Rogelio Posada Molina, Minister of Finance of El Salvador, assured: ”In line with program commitments, the amount of bitcoin held by the public sector remains unchanged, and we are taking steps to mitigate fiscal risks by reducing our role in the Chivo wallet and rethinking the BTC project.” El Salvador has been mining bitcoin at a state-owned geothermal power plant since 2021. The initiative was launched on a trial basis about a month after the law recognizing bitcoin as legal tender came into force.
