by Vincent Muthee
El Salvador, led by president Nayib Bukele, has been claiming to be purchasing one Bitcoin every day throughout 2025. However, the International Monetary Fund (IMF) has outed the claims. According to a report dated July 15, the IMF confirmed that the country has not made any Bitcoin purchase since December 2024.
The exposé reveals that the nation, once celebrated as a pioneer of national-level Bitcoin adoption, is undergoing a major policy reversal and has stopped buying Bitcoin. This move follows the $1.4 billion loan deal with the IMF that required the country to stop BTC purchases.
El Salvador’s Bitcoin Purchases Have Been Just Bluff per IMF
Back in November 2022, El Salvador made headlines by announcing its Bitcoin-first strategy allowing the nation to purchase one Bitcoin per day. While this plan went well for years, the nation’s economic struggles pushed it to apply for a $1.4 billion Extended Fund Facility (EFF) from the IMF. For this facility, the IMF required El Salvador to stop Bitcoin purchases.
But, the nation claimed to not do so, with officials actively reporting new Bitcoin purchases into 2025. In a post on X, Nayib Bukele even criticized the crypto community members that thought El Salvador would stop buying Bitcoin.
“This all stops in April, this all stops in June, this all stops in December. No it’s not stopping! If it didn’t stop when the world ostracized us and most “bitcoiners” abandoned us, it won’t stop now, and it won’t stop in the future,” He wrote.
However, despite several reports of BTC purchases by El Salvador, the report by the IMF shows that the nation has only been performing internal Bitcoin transfers. In short, the nation has not used tax payers money to purchase any Bitcoin.
“The overall stock of Bitcoin held by the public sector has remained unchanged since program approval…Increases in Bitcoin holdings in the Strategic Bitcoin Reserve Fund reflect the consolidation of Bitcoin across various government-owned wallets.” the IMF report noted.
El Salvador Revoked Bitcoin’s Legal Tender Status and Now Chivo is Under Fire
Besides the halt in purchases, El Salvador also revoked Bitcoin’s legal tender status back in January 2025. This move also came as part of IMF’s requirements for the qualification of the Extended Fund Facility that was approved in February this year. While the government did not want publicity around the decision, it signifies a shift in the Bitcoin-first strategy.
As per IMF’s findings, the country is honoring its commitments to stop national level involvement in Bitcoin purchases. However, following the citation of “minor deviations” as a result of irregularities in the Chivo System. Because of this, the Salvadoran government will have to cease public-sector involvement in the Chivo Wallet.
“The IMF also found “minor and short-lived” instances where, despite program approval, Chivo users’ Bitcoin decreased while Chivo didn’t sell the corresponding amount. The IMF….wants the public Chivo wallet shut by July 31,” Protos wrote in a post.
According to reports, El Salvador has already agreed to privatize the Chivo wallet by the end of July. The move coincides with the push for fiscal transparency under the IMF’s funding program.
While the country has stood firm claiming to continue its Bitcoin Reserve Strategy, the halt in new BTC purchases, removal of legal tender status, and upcoming privatization of the Chivo wallet suggest otherwise.
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