El Salvador appears to be playing by the International Monetary Fund's (IMF) rules — at least on the surface. A recent IMF briefing confirmed that the country has stopped using public funds to buy Bitcoin, a key condition tied to its $1.4 billion loan agreement.
The International Monetary Fund (IMF) has confirmed that El Salvador has paused Bitcoin purchases using public funds, adhering to a key stipulation of its $1.4 billion loan agreement.
As reported by Benzinga previously, the IMF had set the condition for the loan, which was approved in December 2022, to be fully disbursed by the time the program concludes in 2025. The lender had also requested updates on the program throughout the year.
During a recent briefing, the IMF stated that El Salvador remains in full compliance with its commitments, helping to put rumors of noncompliance to rest.
In addition to halting Bitcoin accumulation with government funds, the IMF also noted that El Salvador is making progress on fiscal transparency and structural reforms. Meanwhile, with Bitcoin prices hovering around $100,000, the country’s existing 6,158 BTC holdings are now worth roughly $583 million.
Yet the story doesn’t end there. Despite pausing public sector purchases, President Nayib Bukele has found a workaround. According to the country’s National Bitcoin Office, El Salvador is quietly adding one Bitcoin per day — but without tapping official government budgets.
The sources of funding for these daily acquisitions remain unclear, fueling speculation that profits from the country’s Strategic Bitcoin Reserve or private partnerships could be footing the bill.
Bukele’s strategy suggests he’s doubling down on Bitcoin’s future potential, betting that a surge in price could transform El Salvador’s financial position. Some bold forecasts, including one from Cathie Wood’s Ark Invest, even predict Bitcoin could hit $1.5 million by 2030 — a move that could turn El Salvador’s Bitcoin gamble into a historic windfall.
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