News

El Salvador buys Bitcoin despite IMF agreement terms

Thursday 19 June 2025 14:35 CET | News

El Salvador has added 240 Bitcoin to its treasury holdings since December 2024, despite having reached a USD 1.4 billion agreement with the International Monetary Fund (IMF).

 

The agreement in question included conditions intended to halt further government accumulation of the cryptocurrency. Data from the country’s Bitcoin Office indicates the government's digital wallet now holds 6,209 BTC. The purchases have continued under a policy introduced in 2022 to acquire one Bitcoin per day. 

The loan agreement, finalised in December, included provisions that called for the withdrawal of Bitcoin's legal tender status and a commitment to stop further public acquisition. However, El Salvador has maintained its daily purchase strategy since the day the IMF deal was publicly confirmed.

 

El Salvador has added 240 Bitcoin to its treasury holdings since December 2024, despite having reached a USD 1.4 billion agreement with the International Monetary Fund (IMF).

 

Remittances in crypto see notable decline 

While the state’s Bitcoin reserves have grown, cryptocurrency-based remittances to El Salvador have dropped considerably. According to figures from the Central Reserve Bank, digital asset transfers into Salvadoran wallets declined by 44.5% in the first quarter of 2025 compared to the same period a year earlier. 

During the first three months of the year, crypto remittances totalled USD 16 million, down from USD 28.3 million in Q1 2024. This represents a drop in market share from 1.08% to 0.52% of total remittances. 

Responding to questions about El Salvador’s continued Bitcoin purchases, IMF officials stated the country remains technically compliant with the terms of the agreement. A representative of the institution explained in an April 2025 briefing that the commitment applies specifically to the fiscal sector, suggesting that purchases may not necessarily breach the agreement if conducted by entities outside the defined scope of government. 

Observers have also pointed to the interpretive flexibility of the IMF’s terms. According to independent blockchain advisers, the structure of the purchases, possibly routed through non-governmental bodies or involving reclassified assets, could allow El Salvador to maintain compliance while continuing to build its holdings.


Source: Link


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: cryptocurrency, Bitcoin, digital assets, compliance
Categories: DeFi & Crypto & Web3
Companies: Bitcoin Office
Countries: El Salvador
This article is part of category

DeFi & Crypto & Web3

Bitcoin Office

|
Discover all the Company news on Bitcoin Office and other articles related to Bitcoin Office in The Paypers News, Reports, and insights on the payments and fintech industry:





Industry Events