International Monetary Fund Persists in Stating El Salvador Hasn't Acquired Additional Bitcoin - Unravelling the Current Situation
In a surprising turn of events, President Nayib Bukele of El Salvador announced the purchase of 21 BTC, worth approximately $2.3 million, to celebrate the fourth anniversary of El Salvador's Bitcoin Law. This move, however, has been met with criticism and ostracization, as well as a lack of transparency regarding the buys, which are only traceable via Bukele's tweets.
Despite the challenges, Bukele maintains that the Bitcoin buys will continue and will not be halted in the future. In a recent tweet, dated March 4, 2025, Bukele wrote: "Proof of work > proof of whining."
The IMF, however, would not answer further questions about the Bitcoin buy announcements. The international financial institution announced that Bukele's Bitcoin purchases have stopped as part of conditions tied to a $1.4 billion credit agreement, requiring El Salvador to reduce direct government involvement in Bitcoin transactions.
However, blockchain data indicates that the country's Bitcoin reserves have still been growing by about 1 BTC per day. The deposits to El Salvador's Bitcoin wallets are coming from cryptocurrency exchanges like Binance and Bitfinex.
James Bosworth, CEO of Hxagon, has expressed concerns about the lack of transparency in the Bitcoin buys, stating that it may indicate potential wash trades. He also criticised Bukele's management of cryptocurrency, claiming it clouds the budget situation.
The Salvadoran government's communications department confirmed that President Bukele is still buying Bitcoin but did not reply to additional questions. Meanwhile, crypto exchanges Binance, Bitfinex, and Coinbase did not respond to Decrypt's questions regarding El Salvador's Bitcoin purchases.
Crypto analytics firm Bubblemaps states that it is impossible to determine from public blockchain data when the Bitcoin being transferred today was actually purchased. This adds to the ongoing debate about the transparency of El Salvador's Bitcoin purchases.
In 2022, Bukele claimed to buy one Bitcoin per day, equating to over $114,000 daily. Despite pressure from the international community and the IMF, Bukele has made several public statements asserting that the Bitcoin buys will not stop.
The IMF deal forced El Salvador to scale back its Bitcoin experiment in December 2024. However, Bukele's unwavering stance on Bitcoin has kept the issue in the spotlight. You can follow Bukele's tweets about the Bitcoin buys on his Twitter handle, @nayibbukele.
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