El Salvador Continues Bitcoin Accumulation Despite IMF Review Success

El Salvador purchased eight additional bitcoins on Tuesday, shortly after International Monetary Fund staff reached a staff-level agreement on the first review of the country's 40-month Extended Fund Facility worth $1.4 billion, the country's Bitcoin Office announced on its X page.

The timing of the purchase highlights the ongoing tension between President Nayib Bukele's cryptocurrency agenda and IMF conditions that seek to limit government crypto accumulation .

The IMF review , released Tuesday, praised El Salvador for meeting most program targets and achieving improved macroeconomic stability. Staff noted progress on structural benchmarks, fiscal reforms, and inflation control while the economy continues to expand despite external challenges.

However, the fund reiterated its position on cryptocurrency policy, stating that "efforts will continue to ensure that the total amount of Bitcoin held across all government-owned wallets remains unchanged, consistent with program commitments." The IMF also reaffirmed its July deadline for ending public sector participation in the state-run Chivo wallet.

Technical Compliance Amid Continued Purchases

El Salvador has found a regulatory workaround that allows continued Bitcoin acquisition while technically complying with IMF conditions. The Bitcoin Office operates outside the defined fiscal sector, enabling small daily purchases without violating performance criteria established under the loan agreement.

"In terms of El Salvador, let me say that I can confirm that they continue to comply with their commitment of non-accumulation of Bitcoin by the overall fiscal sector, which is the performance criteria that we have," IMF Western Hemisphere Department Director Rodrigo Valdes said during an April press briefing .

The country now holds 6.089 BTC worth more than $662 million, according to Bitcoin Treasuries. This represents a significant accumulation since El Salvador first adopted Bitcoin as legal tender in 2021.

Geopolitical Implications

The continued Bitcoin purchases underscore the broader geopolitical dynamics at play. While Bukele has used cryptocurrency adoption to project economic sovereignty and technological innovation, the IMF agreement reveals the limits of this strategy when facing fiscal pressures.

The arrangement represents a pragmatic shift from ideological positioning toward macroeconomic stability. By securing IMF backing, El Salvador aims to rebuild international market confidence, reduce sovereign bond risk premiums, and attract foreign investment.

For the IMF, the El Salvador case establishes precedent for managing cryptocurrency adoption by sovereign nations. The fund has successfully used financial assistance to enforce fiscal discipline while limiting what it views as systemic risks from government crypto accumulation.

The ongoing standoff between continued Bitcoin purchases and IMF restrictions suggests this dynamic will persist throughout the 40-month program period, with both sides finding ways to maintain their core positions while avoiding direct confrontation.