El Salvador Quietly Expands Bitcoin Holdings Despite IMF Deal
El Salvador, famously the first nation to adopt Bitcoin as legal currency, is continuing to quietly grow its Bitcoin reserves, even as the International Monetary Fund (IMF) claims the government has halted its BTC purchases.
New data from the country's Bitcoin Office reveals that El Salvador’s treasury added 7 more Bitcoin — worth over $650,000 — in the week leading up to April 27. This move appears to contrast with recent remarks from IMF officials, who maintain that the country is still honoring its pledge to freeze Bitcoin acquisitions.
During a press briefing on April 26, Rodrigo Valdes, director of the IMF’s Western Hemisphere Department, reiterated that El Salvador remains compliant with the performance criteria tied to its $1.4 billion loan agreement. "I can confirm that they continue to comply with their commitment of non-accumulation of Bitcoin by the overall fiscal sector," Valdes stated, emphasizing that the broader program focuses primarily on structural reforms, governance improvements, and greater transparency.
The deal, finalized in December 2024, required El Salvador to stop officially purchasing Bitcoin and reconsider its status as legal tender. The IMF’s flexible interpretation suggests that Bitcoin purchases might be conducted through non-public entities or assets classified differently, keeping El Salvador technically compliant.
By utilizing this strategy, El Salvador is managing a delicate balancing act — maintaining its pro-Bitcoin reputation while unlocking crucial international funding to stabilize its economy, which has faced heavy debt burdens and low foreign reserves.
El Salvador’s approach illustrates the growing friction between financial innovation and traditional institutions. Their experience offers important insights for other nations considering crypto adoption, showing the importance of strong regulatory systems and the capacity to withstand international financial pressures.
As Bitcoin continues to climb in value, El Salvador’s bold crypto experiment is far from over — and may yet influence how other countries approach digital currencies in a world still dominated by traditional finance.