El Salvador Buys Bitcoin Again—Right After IMF Demands Zero Crypto Holdings in Loan Agreement, But Will It Face Consequences?

El Salvador Defies IMF Again With New Bitcoin Purchases Despite $1.4 Billion Loan Deal

El Salvador has resumed its Bitcoin buying spree, acquiring eight more tokens just as the International Monetary Fund (IMF) announced progress in its financial review of the country’s $1.4 billion loan agreement.

The latest purchase came even as the IMF reinforced its demand that the government halt all further Bitcoin-related activity funded by public resources.

IMF Calls For Halt, But El Salvador Keeps Buying

Despite repeated requests from the IMF to freeze Bitcoin accumulation under government control, El Salvador’s Bitcoin Office revealed it has continued to make daily purchases.

Over the past month, it acquired 30 BTC, pushing the nation’s total holdings to approximately 6,190.18 BTC — now worth over $672 million.

The timing of the latest acquisition is striking.

It was announced shortly after the IMF and El Salvador reached a staff-level agreement during the first review of a 40-month Extended Fund Facility (EFF), which includes a $120 million disbursement pending executive board approval.

The IMF praised the country for hitting key targets tied to fiscal discipline, structural reforms, and inflation control, but warned that public involvement in Bitcoin must be curbed.

Chivo Wallet Exit Set For July

As part of the deal, El Salvador must withdraw from the state-managed Chivo wallet by the end of July.

The IMF said in its official statement on 27 May,

“Efforts will continue to ensure that the total amount of Bitcoin held across all government-owned wallets remains unchanged.”

Legal reforms introduced in recent months also removed Bitcoin’s status as compulsory legal tender, allowing it to remain an optional currency.

These moves are designed to satisfy IMF criteria and improve the country's access to international funding.

Can The Bitcoin Office Operate Around IMF Rules?

Interestingly, the country's Bitcoin Office continues to operate without restriction.

According to its official statements, the purchases do not breach IMF terms because the office is not legally considered part of the core public fiscal sector.

This legal distinction has allowed the government to maintain a daily Bitcoin buying strategy.

President Nayib Bukele, who has long championed Bitcoin as a national reserve asset, has made it clear that international pressure will not deter his administration.

In a post on X, formerly Twitter, he dismissed the IMF’s demands with a mocking tone:

“This all stops in April. This all stops in June. This all stops in December. No, it’s not stopping.”

Bitcoin Profits Fuel Presidential Confidence

President Bukele recently revealed that the nation’s Bitcoin holdings have surged to an unrealised profit of $386 million — a 132% increase from its initial investment.

This financial success, at least on paper, appears to have further emboldened the administration’s crypto stance.

While the IMF insists on a ceiling of zero for public Bitcoin acquisitions, El Salvador continues to push forward, testing the limits of the agreement through legal interpretation and technical loopholes.

Loan Deal Critical Amid High Debt Levels

The broader loan arrangement, agreed in December, aims to support El Salvador’s economic recovery and unlock access to additional financing of up to $3.5 billion.

The country’s public debt had reached 85% of GDP last year, adding urgency to the IMF’s fiscal reform agenda.

Rodrigo Valdes, Director of the IMF’s Western Hemisphere Department, acknowledged that El Salvador is meeting its performance benchmarks, including commitments to limit crypto activity.

However, he reaffirmed that the core requirement remains unchanged:

“The nation’s commitment to non-accumulation of crypto by the overall fiscal sector was the performance criterion they had in place.”

Yet, with the Bitcoin Office continuing to operate in a legal grey zone and Bukele openly challenging IMF pressure, El Salvador’s balancing act between digital currency ambition and international compliance shows no signs of slowing.