Catenaa, Friday, May 30, 2025-The International Monetary Fund said Tuesday it will “ensure” that El Salvador does not increase its bitcoin holdings, reaffirming a provision of a $1.4 billion loan agreement that restricts further cryptocurrency purchases by the government.
The move comes as part of the IMF’s Extended Fund Facility agreement with El Salvador, initially approved in December 2024.
The deal was finalized at the staff level this week following El Salvador’s compliance with several conditions, including voluntary bitcoin use in the private sector and limits on government involvement in crypto transactions.
Despite the agreement, President Nayib Bukele has continued to promote bitcoin, vowing to grow the country’s digital asset reserves.
In March, he wrote on social media that El Salvador’s bitcoin strategy would not change, referencing strong gains in the nation’s portfolio, which recently topped $357 million in unrealized profit.
The IMF, however, maintains that bitcoin-related risks could pose threats to El Salvador’s financial stability.
In its February statement, the fund emphasized that government engagement in bitcoin should be “confined,” despite those risks not yet materializing.
Under the 40-month financing plan, El Salvador has already received a $120 million disbursement.
The IMF noted that additional funds from institutions like the World Bank could push the total aid package to $3.5 billion.
Bukele reposted the IMF’s statement on Tuesday but did not comment on the restriction. His silence has left questions about whether El Salvador will comply with the IMF’s demand or pursue further bitcoin acquisitions regardless.
