Despite being the first country to recognize Bitcoin as legal tender, El Salvador continues to expand its Bitcoin holdings — even as the International Monetary Fund (IMF) suggests otherwise.
According to data from El Salvador’s Bitcoin Office, the country’s treasury added 7 Bitcoin, valued at over $650,000, in the week leading up to April 27.
When questioned about these Bitcoin acquisitions, Rodrigo Valdes, head of the IMF’s Western Hemisphere Department, stated that El Salvador remains compliant with its agreement to halt Bitcoin accumulation by the government sector.
“In El Salvador’s case, I can confirm they are adhering to the commitment regarding non-accumulation of Bitcoin by the broader fiscal sector, which forms part of our performance criteria,” Valdes said during a press briefing on April 26.
He also noted, “It’s important to understand that El Salvador’s IMF program is not centered around Bitcoin. It focuses much more on deep structural reforms, governance improvements, and greater transparency.”
Back in December 2024, El Salvador secured a $1.4 billion loan deal with the IMF, which required it to remove Bitcoin’s legal tender status and to stop accumulating BTC through government means.
A Loophole for Bitcoin Purchases?
However, according to blockchain expert and intergovernmental adviser Anndy Lian, the way the agreement is interpreted could still allow Bitcoin purchases through non-governmental channels.
“The IMF’s flexible interpretation points to the possibility that acquisitions are being made by private sector entities or reclassified assets, allowing El Salvador to technically remain compliant,” Lian explained.
He added, “This approach enables the country to maintain its pro-Bitcoin stance while also securing crucial IMF financing needed to stabilize public debt and bolster limited financial reserves.”
Lian also stressed that El Salvador’s case highlights the growing friction between innovative financial strategies and traditional economic frameworks.
“El Salvador’s journey provides important insights for other nations considering crypto adoption, underlining the importance of solid regulatory systems and strong institutional capacity to manage international financial dynamics,” he concluded.
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