Key Takeaways
- IMF states El Salvador's Bitcoin increases are due to wallet consolidation, not new purchases.
- The government will enhance transparency and limit further Bitcoin exposure under IMF oversight.
- Privatization of the Chivo wallet and regulatory reforms are underway, with IMF support.
El Salvador’s government has repeatedly asserted that it is making daily Bitcoin purchases, raising its total reserves to more than 6,200 BTC.
However, a July 15 report from the International Monetary Fund (IMF) challenges these claims, stating that increases in El Salvador’s Bitcoin holdings reflect only the consolidation of coins across various government wallets—not new acquisitions.
According to a footnote in the IMF document:
“Increases in [El Salvador’s] Bitcoin holdings in the Strategic Bitcoin Reserve Fund reflect the consolidation of Bitcoin across various government-owned wallets.”
Public statements
This stance contradicts public statements from El Salvador’s National Bitcoin Office, which has insisted that the government continues to buy Bitcoin daily.
The IMF further noted that, following its earlier demands tied to a $1.4 billion funding agreement, “the overall stock of Bitcoin held by the public sector has remained unchanged since program approval.”
Government compliance and transparency
In response to international scrutiny, El Salvador has taken steps to enhance oversight of its Bitcoin strategy.
The IMF report highlights commitments from the Nayib Bukele administration to limit further Bitcoin exposure and to increase transparency.
Quarterly financial disclosures from entities such as Chivo, CEL, LaGeo, and Fidebitcoin are expected, and all government Bitcoin activities will be included in national macroeconomic data.
Privatization and regulatory reforms
The government is proceeding with plans to privatize the state-run Chivo wallet, with a sale targeted for completion by July 2025.
Efforts are also ongoing to reform the legal and regulatory framework for digital assets, with the IMF providing technical support in areas like asset custody, segregation, and compliance with anti-money laundering standards.
Current bitcoin holdings
On-chain data indicates El Salvador holds over 6,200 BTC, valued at approximately $738 million, placing it among the top sovereign holders globally. For real-time and historical data on El Salvador’s Bitcoin holdings, see the El Salvador bitcoin treasury tracker.
