The International Monetary Fund (IMF) recently published a report regarding its loan agreements with El Salvador, stating that the country has not increased its bitcoin holdings since December 2024.
Overview of the IMF Report
The IMF report mentions that El Salvador's Chivo wallet does not adjust its bitcoin reserves according to changes in client deposits. This results in minor discrepancies that create the appearance of the public sector accumulating bitcoin.
Loan Terms and Bitcoin
El Salvador signed a $1.4 billion loan agreement with the IMF in December 2024, agreeing to scale back its involvement with bitcoin. Changes to bitcoin laws made its acceptance as legal tender voluntary, and the country agreed to stop accumulating bitcoin using taxpayer funds.
El Salvador's Response to IMF Demands
President Nayib Bukele responded defiantly to the IMF's demands to stop accumulating bitcoin, asserting that the country would continue to stack BTC. 'No, it’s not stopping. If it didn’t stop when the world ostracized us, it won’t stop now,' Bukele wrote in a post.
The situation with El Salvador and its stance on bitcoin continues to attract significant interest and discussion within the crypto community, especially given its strategic approach to digital assets.
