Key TakeawaysThe letter confirms that, in line with the terms of the IMF program, the government has not added to its Bitcoin holdings since the deal was signed in December.The government has also reportedly committed to reducing the public sector’s involvement in Bitcoin-related activities, including a scaled-back role in managing the state-run Chivo digital wallet.El Salvador has not made any new Bitcoin purchases since December 2024, according to a report published Tuesday by the International Monetary Fund (IMF). The update follows months of speculation over whether the country was continuing to accumulate the crypto after entering into a $1.4 billion loan agreement with the IMF earlier this year.The IMF report highlights a pause in Bitcoin acquisitions, citing a letter of intent signed by El Salvador’s central bank president, Douglas Pablo Rodríguez Fuentes, and finance minister, Jerson Rogelio Posada Molina. The letter confirms that, in line with the terms of the IMF program, the government has not added to its Bitcoin holdings since the deal was signed in December. The government has also reportedly committed to reducing the public sector’s involvement in Bitcoin-related activities, including a scaled-back role in managing the state-run Chivo digital wallet.El Salvador wrote history in 2021 by becoming the first nation to adopt Bitcoin as legal tender, under the leadership of President Nayib Bukele. The move was hailed by crypto advocates globally, and in 2022, Bukele announced a plan to purchase one Bitcoin per day using public funds. This policy was accompanied by the creation of a National Bitcoin Office (ONBTC)However, mounting fiscal stress, inflation, and debt levels forced the government to seek financial assistance from the IMF. The resulting Extended Fund Facility, finalized in early 2025, included provisions that restricted Bitcoin-related transactions in the public sector. While government representatives publicly claimed that daily purchases would continue, the IMF’s findings appear to contradict those statements.The report also notes discrepancies related to the Chivo wallet. The IMF states “Increases in bitcoin holdings in the Strategic Bitcoin Reserve Fund reflect the consolidation of bitcoin across various government-owned wallets.”Although users may see increases in their Bitcoin balances, the platform does not adjust the government’s reported reserves accordingly. Since the government does not actively sell its Bitcoin holdings, these accounting differences led some to mistakenly believe that the state was still accumulating assets.In January 2025, El Salvador’s legislature amended its Bitcoin law, removing the requirement for businesses to accept the cryptocurrency. The reforms also curtailed the use of taxpayer money for further Bitcoin investments.Despite the IMF’s confirmation and legal changes, President Bukele has remained publicly defiant. In March, he posted on social media affirming the country’s continued ideological commitment to Bitcoin, although official data no longer supports claims of ongoing government purchases.From Miscalculated Deals to Negative Rumors: What caused Celsius’s downfall?Hungary and Thailand to jointly investigate blockchain technologyCLS Global Admits to Wash Trading Charges in FBI Undercover ProbeWorld’s first “Miss AI”