Catenaa, Saturday, March 08, 2025-The International Monetary Fund (IMF) has mandated El Salvador to stop public sector Bitcoin purchases and phase out support for its Chivo wallet as part of a $1.4 billion loan agreement, officials confirmed.
Under the agreement, El Salvador must cease voluntary Bitcoin acquisitions using public funds and gradually withdraw financial backing for Chivo by July 2025. The country must also disclose its Bitcoin holdings, liquidate the Fidebitcoin trust, and release audited financial statements.
Despite the IMF’s restrictions, President Nayib Bukele’s administration has continued buying Bitcoin, recently adding 12 BTC to its reserves, bringing the total to 6,100 BTC. Critics argue that the government’s Bitcoin experiment has failed, with adoption remaining low and economic struggles persisting.
El Salvador’s Congress recently rolled back its Bitcoin mandate, allowing businesses to reject cryptocurrency payments. The move aligns with the IMF’s conditions, signaling a shift away from Bukele’s aggressive Bitcoin strategy.
The country’s economic challenges continue to mount, with its fiscal deficit widening and GDP growth stagnating. While the IMF’s loan aims to stabilize El Salvador’s finances, concerns remain over financial transparency and how the funds will be managed.
Failure to comply with IMF requirements could jeopardize future disbursements, worsening the country’s financial outlook. Regular IMF reviews are scheduled throughout 2025 to ensure adherence to the agreement.
