The government of El Salvador has halted cryptocurrency purchases following an agreement with the International Monetary Fund (IMF) in December 2024.
IMF Agreement and Its Consequences
According to an IMF report, since December 2024, the government of El Salvador has not made any additional cryptocurrency purchases. This decision followed the reaching of a loan agreement worth $1.4 billion under a 40-month program.
Changes in Bitcoin Strategy
As part of the agreement with the IMF, Salvadoran authorities pledged to revise their current bitcoin strategy. In January, regulatory changes were made, including the withdrawal of government support for the Chivo wallet and the requirement to pay taxes only in U.S. dollars.
Crypto Assets and IMF Experts’ Opinions
IMF experts indicated that despite the agreement, authorities continued to build up their bitcoin reserves. As of May 19, a balance of 6,242 BTC was reported. In a letter to the IMF chief, Salvadoran officials assured that the amount of bitcoin held by the public sector remains unchanged.
Thus, El Salvador is continuing to shift its position on cryptocurrencies in line with IMF recommendations, which may further impact its financial stability.
