Key Takeaways

• El Salvador added 8 more Bitcoin despite IMF pressure to freeze government acquisitions.
• The IMF is satisfied with El Salvador’s economic reforms but remains firm on limiting crypto-related activities.
• Bitcoin purchases are being made by the Bitcoin Office, which is technically not part of the public fiscal sector.
• President Bukele continues to promote Bitcoin as a strategic asset, boosting national holdings to 6,200 BTC.
• Legal reforms have eased IMF concerns while maintaining the government’s ability to use Bitcoin optionally.

The Bitcoin Office Announces Another Purchase

El Salvador’s Bitcoin Office confirmed the recent Bitcoin purchase on Tuesday, deepening the nation’s crypto treasury.

This comes just after the IMF and Salvadoran officials reached a staff-level agreement as part of the first review under a $1.4 billion Extended Fund Facility (EFF).

El Salvador’s Total Bitcoin Holdings

Source: Bitcoin Office

Despite this, the IMF emphasized the importance of limiting further government crypto activity and reiterated its demand that the country cease expanding its Bitcoin holdings through public resources.

IMF Maintains Firm Stance On Bitcoin Accumulation

During the review process, the IMF praised El Salvador for meeting critical structural and fiscal benchmarks, including:

• Reducing inflation
• Enhancing fiscal transparency
• Improving the overall economic outlook

However, it also reaffirmed its condition that the total Bitcoin held by government-related entities must not increase, especially through public sector channels.

A clear deadline was set for phasing out public involvement with the state-operated Chivo wallet, the country’s official Bitcoin wallet.

Legal Loopholes In Bitcoin Acquisition

While President Nayib Bukele’s administration has formally paused Bitcoin purchases through the public sector, El Salvador’s Bitcoin Office operates in a legal gray area.

Notably, this entity is not classified under the fiscal sector, which allows it to continue daily micro-acquisitions of Bitcoin without technically breaching IMF loan terms.

Swelling Value, Swelling Tensions

According to Arkham Intelligence, the country now holds approximately 6,200 BTC, valued at more than $674 million. A Bitcoin rally in recent weeks has boosted the valuation, even though prices have fluctuated slightly.

President Bukele indicated the holdings had briefly surpassed $644 million after acquiring 30 BTC in April. As of late May, that valuation has slightly dipped but remains above $637 million, still a significant gain for the country as it looks to maintain friendly ties with the United States.

President Nayib Bukele Meeting President Donald Trump

Source: Getty Images

A Delicate Balance

The continued Bitcoin acquisitions set the stage for a quiet standoff between El Salvador and the IMF.

Despite IMF pressure, President Bukele remains firm in his pro-Bitcoin stance. The administration argues that their Bitcoin purchases are legal and do not violate the agreed terms of the IMF’s financial package.

Rodrigo Valdes, Director of the IMF’s Western Hemisphere Department, stated in April:

“They (El Salvador) continue to comply with their commitment of non-accumulation of Bitcoin by the overall fiscal sector.”

 

Legal Reforms Ease IMF Concerns

Recent legal reforms in El Salvador have reduced the national requirement to accept Bitcoin as legal tender, making its use optional rather than mandatory. This change was largely seen as a move to appease the IMF while preserving Bukele’s crypto-forward policy.

IMF & Beyond

The $1.4 billion IMF loan is just one piece of El Salvador’s broader financial strategy.

The successful completion of IMF reviews could unlock up to $2 billion in additional funding from development banks. These resources are crucial for a nation grappling with a public debt load of 85% of GDP, even as crypto-based initiatives get underwar.

Still, by meeting IMF performance benchmarks while still acquiring Bitcoin through legal workarounds, El Salvador is walking a tightrope between financial diplomacy and digital asset evangelism.

FAQ

Is El Salvador violating IMF conditions with its new Bitcoin purchases?

No. The purchases are made by the Bitcoin Office, which is not classified as part of the fiscal sector, allowing legal room to maneuver.

How much Bitcoin does El Salvador currently hold?

As of May 2025, El Salvador holds around 6,200 BTC, valued at over $637 million, according to Arkham Intelligence.

Why does the IMF oppose El Salvador’s Bitcoin acquisitions?

The IMF is concerned about the volatility and macroeconomic risks of holding large reserves in Bitcoin, especially when public funds are involved.

What’s the future of Bitcoin as legal tender in El Salvador?

Bitcoin is no longer mandatory legal tender but remains an optional currency, allowing its continued use without breaching international agreements.

What’s at stake for El Salvador?

Beyond the $1.4 billion IMF deal, El Salvador could unlock another $2 billion in financing from development banks—crucial for managing its debt burden and stabilizing the economy.