El Salvador is once again making headlines in the crypto world, not for its bold declarations, but for its subtle persistence. Despite securing a $1.4 billion loan from the International Monetary Fund (IMF)—a deal that came with explicit conditions to halt official Bitcoin accumulation—the country continues to expand its digital asset reserves, navigating the fine print with fintech finesse.
Bitcoin Accumulation Continues—With a Twist
Since December 2024, El Salvador’s treasury wallet has grown by 240 Bitcoin, now totaling over 6,200 BTC, according to public records and blockchain data . This ongoing accumulation is part of a daily purchase plan initiated in 2022, which has not been interrupted by the IMF agreement. The government’s approach? Keep Bitcoin purchases outside the core fiscal sector, technically complying with the IMF’s terms while still building reserves .
IMF Agreement: Strict on Paper, Flexible in Practice
The IMF’s loan package required El Salvador to stop acquiring Bitcoin through official fiscal channels and to remove its legal tender status . However, the government has interpreted these requirements with flexibility. By managing Bitcoin purchases through entities outside the main fiscal sector and not using IMF funds for these acquisitions, El Salvador remains within the letter—if not the spirit—of the agreement .
IMF officials have acknowledged this technical compliance, noting that while the country’s Bitcoin wallet continues to grow, the operations are structured to avoid direct violations of the loan’s conditions . The Bitcoin Office transparently records each transaction, and these holdings are not factored into national budget planning or public expenditures .
Market Impact and Economic Context
El Salvador’s Bitcoin strategy remains controversial. The country now holds nearly $550 million in Bitcoin, representing about 15% of its foreign exchange reserves . This exposure brings both potential upside and significant risk, given Bitcoin’s notorious price volatility. Recent market downturns have already led to notable losses in the value of these reserves .
Meanwhile, the anticipated “volcano bonds”—intended to fund the ambitious Bitcoin City project—remain on hold, with officials citing unfavorable market conditions . Traditional remittances continue to far outpace Bitcoin-based transfers, which have dropped sharply in 2025, accounting for just 0.52% of total remittances .
A Balancing Act Between Innovation and Compliance
President Nayib Bukele’s administration defends its Bitcoin policy as a sovereign financial strategy, emphasizing that the IMF loan is not being used to fund crypto purchases . By keeping these operations outside the core fiscal sector, El Salvador maintains a delicate balance: pursuing its digital asset ambitions while staying technically aligned with international financial obligations.
“No, it’s not stopping. If it didn’t halt when the world isolated us and most ‘bitcoiners’ turned their backs, it won’t stop now and it won’t stop in the future.”
— President Nayib Bukele
As the world watches, El Salvador’s experiment with Bitcoin continues—carefully threading the needle between global financial rules and crypto innovation.
