A July 15 report by the International Monetary Fund (IMF) suggests that El Salvador’s growing Bitcoin holdings are not the result of recent purchases, but rather a reorganization of existing assets.
According to a footnote in the document:
“Increases in [El Salvador’s] Bitcoin holdings in the Strategic Bitcoin Reserve Fund reflect the consolidation of Bitcoin across various government-owned wallets.”
This claim directly challenges statements from El Salvador’s National Bitcoin Office, which has publicly stated that the Central American government continues to buy Bitcoin daily.
Following the IMF’s prior demands that the country stop purchasing Bitcoin tied to its $1.4 billion funding, the report further stated that “the overall stock of Bitcoin held by the public sector has remained unchanged since program approval” and that “efforts should continue to keep the public sector’s holdings of Bitcoin unchanged.”
Notably, on-chain data shows that the country holds over 6,200 BTC (more than $738 million) in its coffers. This places El Salvador among the top sovereign crypto holders globally.
El Salvador’s Bitcoin compliance efforts
The IMF also outlined El Salvador’s recent efforts to reduce risk and improve oversight in its Bitcoin strategy.
According to the report, the Central American country’s authorities have committed to limiting further exposure to Bitcoin and increasing transparency around their crypto operations.
This means that the Nayib Bukele-led government will publish quarterly financial statements for entities involved in its Bitcoin operations, including Chivo, CEL, LaGeo, and Fidebitcoin. Additionally, all Bitcoin activity is expected to be incorporated into national macroeconomic and fiscal data.
The authorities are also expected to provide the IMF with updated, signed statements detailing Bitcoin held by the public sector.
The IMF added:
“Work is underway in enacting a comprehensive framework for managing government-owned Bitcoins and other crypto assets, with the aim of strengthening governance, transparency, and accountability as well as defining the role of the Bitcoin Management Agency, AAB.”
IMF also stated that the Nayib Bukele-led government is moving forward with its plan to end public participation in the Chivo wallet project.
According to the financial regulator, a business plan for Chivo’s privatization has already been published, and talks with potential buyers are in progress. The goal is to finalize the sale by July 2025.
Finally, the report points to ongoing work in reforming the country’s legal framework for digital assets. The IMF is providing technical assistance to help align El Salvador’s regulations with international standards, particularly in areas like asset custody, segregation, and compliance with anti-money laundering and counter-terrorism financing rules.
The crypto community continues to report El Salvador’s Bitcoin commitment, stating it recently hit an all-time high of $760,075,734, with 30 BTC added over the past month.
The post IMF claims El Salvador is NOT buying Bitcoin but simply moving coins between wallets appeared first on CryptoSlate.
