The government of El Salvador has halted Bitcoin purchases despite claims by President Nayib Bukele that purchases have continued since late 2022.
Stopping Bitcoin Purchases
President of El Salvador's Central Bank, Douglas Pablo Rodríguez Fuentes, and Finance Minister Jerson Rogelio Posada Molina reported to the IMF that all Bitcoin acquisitions stopped in February 2025. While President Bukele asserts otherwise, transfers relate to consolidations rather than new acquisitions.
Contradictions with President
According to Rodríguez Fuentes, "The stock of Bitcoins held by the public sector remains unchanged" since February 2025. These contradictions cast doubt on the government's financial strategy and raise concerns over the president's assertions.
Impact on Financial Strategy
This situation could adversely affect El Salvador's financial strategy as the first country to adopt Bitcoin as legal tender is under scrutiny regarding IMF financing terms. Compliance is critical for the continuation of the $1.4 billion funding program. Industry observers note that Bitcoin's legal tender adoption hasn't led to dramatic market changes since its initiation, but alignment with the IMF demands greater transparency and consistency in reporting fiscal activities.
This situation underscores the complexities involved in the intersection of cryptocurrencies and public sector funds. Ensuring transparency and regulatory compliance is essential to avoid discrepancies that could lead to financial and regulatory repercussions for El Salvador.
