El Salvador consistently claimed to make daily Bitcoin purchases to grow its holdings to more than 6,200.
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.
Increases in [El Salvador’s] Bitcoin holdings in the Strategic Bitcoin Reserve Fund reflect the consolidation of Bitcoin across various government-owned wallets.
According to a footnote in the document:
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 public sector’s overall Bitcoin stock has remained unchanged since program approval” and that “efforts should continue to keep these holdings unchanged.”
On-chain data notably 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: Efforts to Comply with Bitcoin Regulations
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 committed to limiting further exposure to Bitcoin and increasing transparency around their crypto operations.
The Nayib Bukele-led government will publish quarterly financial statements for entities involved in its Bitcoin operations, including Chivo, CEL, LaGeo, and Fidebitcoin. Additionally, it expects to incorporate all Bitcoin activity into national macroeconomic and fiscal data.
The authorities also expect to provide the IMF with updated, signed statements detailing Bitcoin the public sector holds.
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.
The IMF added:
The 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, authorities already published a business plan for Chivo’s privatization, and they are progressing with talks with potential buyers. They aim to finalize the sale by July 2025.
Finally, ongoing work in reforming the country’s legal framework for digital assets is pointed to by the report. Technical assistance is being provided by the IMF 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 continuously reports El Salvador’s Bitcoin commitment, stating it recently hit an all-time high of $760,075,734, with the country adding 30 BTC over the past month.
