El Salvador, the first country to adopt Bitcoin as legal tender, says it has bought more than $100 million in BTC despite pledging to the International Monetary Fund (IMF) to limit public exposure to the asset as part of a loan agreement.
According to data from El Salvador’s Bitcoin Office, the government acquired 1,090 Bitcoin (BTC) worth more than $100 million on Tuesday. The purchase comes after the IMF said in a July report that the Central American nation had not bought any new Bitcoin since the organization approved a $1.4 billion loan program at the end of 2024.
According to El Salvador’s Bitcoin reserve data, the country’s Bitcoin holdings went from 5,968 BTC on Dec. 18, 2024 — when the government inked a deal with the IMF — to over 7,474 BTC following its latest purchase announcement.
El Salvador’s reserves were valued at roughly $683 million at the time of writing, despite Bitcoin losing ground after falling 28% from an all-time high of over $126,000 in early October to $96,000 at the time of writing.
The move follows comments in July from Quentin Ehrenmann, general manager at My First Bitcoin — a non-governmental organization focused on Bitcoin adoption — who said that El Salvador’s Bitcoin reserve had a limited impact on the broader population. He said that “since the government entered into this contract with the IMF, Bitcoin is no longer legal tender, and we haven’t seen any other effort to educate people.”
“The government, apparently, continues to accumulate Bitcoin, which is beneficial for the government — it’s not directly good for the people.“
The IMF and the Salvadoran government did not respond to Coinpectra’s requests for comment by publication.
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Is El Salvador buying Bitcoin or not?
Data from El Salvador’s Bitcoin Office appears to show that the government has continued to accumulate BTC since signing the IMF agreement. The IMF also requested that the country restrict Bitcoin purchases in early March, in accordance with the terms of the previous loan agreement.
Still, a letter of intent signed by El Salvador’s central bank president and Minister of Finance — quoted in the aforementioned July IMF report — claims that the Central American country bought no Bitcoin since the 2024 loan.
The IMF report explained that Chivo “does not adjust its Bitcoin reserves to reflect changes in clients’ Bitcoin deposits,” which led to “minor” discrepancies that made it appear that El Salvador’s public sector was accumulating BTC.
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The letter, signed by Salvadoran officials, further stated that “in line with commitments under the program, the stock of Bitcoins held by the public sector remains unchanged.” It also promised that steps to reduce exposure are being taken.
“We are taking steps to mitigate fiscal risks by reducing the public sector’s role in the Chivo wallet and reframing the Bitcoin project.”
Those assurances came before the latest — and unusually large — Bitcoin purchase. Even so, the government has continued to suggest it was steadily accumulating BTC before this week’s buy, raising fresh questions over how closely it is adhering to the IMF deal and how its Bitcoin reserves are being reported.
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