- IMF reports that El salvador has not increased its Bitcoin holdings by new purchases but through consolidation of existing government wallets.
- The overall public sector Bitcoin balance has remained unchanged since the IMF’s loan program began.
- Claims by El Salvador’s National Bitcoin Office about recent steady Bitcoin acquisitions contradict IMF findings.
- The IMF wants public participation in the state-run Chivo Bitcoin wallet to end by July 31.
- The IMF has disbursed an additional $118 million to El Salvador as part of its ongoing loan program.
El Salvador has not bought additional Bitcoin despite recent claims, according to the International Monetary Fund (IMF). The IMF stated that recent increases in the country’s Bitcoin holdings reflect the consolidation of existing government-held Bitcoin wallets, not new acquisitions.
In its review of the Extended Fund Facility, which granted El Salvador a $1.4 billion loan, the IMF clarified that, “Increases in Bitcoin holdings in the Strategic Bitcoin Reserve Fund reflect the consolidation of Bitcoin across various government-owned wallets.” The overall amount of Bitcoin held by the state has not changed since the program’s approval.
The country’s National Bitcoin Office has claimed ongoing Bitcoin purchases, which would violate the IMF’s conditions under the current loan agreement. President Nayib Bukele has shared updates about Bitcoin holdings and their value, but the IMF review states, “The overall stock of Bitcoin held by the public sector has remained unchanged since program approval.”
Previously, El Salvador faced scrutiny for its Bitcoin reporting methods, such as when a government tracker was found to double-count holdings. The IMF’s latest review also found brief periods where user Bitcoin balances within the Chivo wallet system fell without a corresponding sale, though this issue has been addressed.
The IMF wants public participation in the Chivo Bitcoin wallet – the government’s digital wallet app – to end by July 31. According to the IMF report, “minor and short-lived” declines in users’ Bitcoin balances have already been resolved.
Despite these findings, the IMF assessed the overall performance of the loan program as positive, noting that the economy is expanding and macroeconomic stability is improving. With this review, the IMF approved an immediate disbursement of Special Drawing Rights totaling $118 million, bringing the total released under the program to $231 million.
For more details, the full IMF review can be found here. Additional coverage on the origin of El Salvador’s Bitcoin can be accessed Bitfinex-raising-control-concerns/”>here.
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