- IMF says talks with El Salvador continue, focusing on transparency, public funds protection, and Bitcoin-related risks.
- Negotiations to sell or wind down El Salvador’s Chivo Bitcoin wallet are well advanced under the IMF loan program.
- Despite IMF pressure, El Salvador continues daily Bitcoin purchases while GDP growth is projected near 4%.
The International Monetary Fund (IMF) said discussions with El Salvador over its Bitcoin-related policies remain ongoing, with a focus on improving transparency, protecting public funds, and reducing financial risks.
The update came as part of the IMF’s second review of El Salvador’s 40-month Extended Fund Facility (EFF), under which the country secured a $1.4 billion loan in 2024 after prolonged negotiations strained by its Bitcoin adoption.
According to the IMF, talks are particularly advanced regarding the future of the government-run Chivo Bitcoin wallet, including a potential sale or wind-down of the platform.
Chivo, launched in September 2021 as part of El Salvador’s Bitcoin rollout, has faced widespread criticism since its debut, including allegations of identity theft, fraud, technical failures, and frozen user accounts.
Chivo wallet under negotiation
The IMF confirmed that negotiations for the sale of the Chivo wallet are “well advanced,” marking a significant step in scaling back the government’s direct involvement in Bitcoin infrastructure.
One of the architects of the wallet said last year that the application should be shut down due to the controversy it generated since its launch.
As part of the EFF agreement, El Salvador committed to reducing public sector participation in Bitcoin-related activities.
In March, the IMF formally asked the country to halt Bitcoin accumulation through purchases and mining and to dismantle public structures used to acquire the digital asset.
The fund later said El Salvador has complied with these commitments, including initiating a full phase-out of the Chivo wallet.
Despite these steps, several private-sector Bitcoin wallets are expected to continue operating in the country.
At the time the IMF loan was agreed, Stacy Herbert, director of El Salvador’s National Bitcoin Office, said that while Chivo’s role would change, private wallet providers would continue to serve users.
Bitcoin accumulation remains a point of tension
Bitcoin policy remains a central source of friction between El Salvador and the IMF.
The fund has repeatedly warned that Bitcoin’s price volatility poses risks to public finances and has pushed for limits on government exposure.
Nevertheless, El Salvador continues to report ongoing Bitcoin purchases.
Last month, the country added 1,098 BTC to its national reserves, worth nearly $100 million at the time, according to official disclosures.
Data published by El Salvador’s Bitcoin Office shows that the country holds about 7,509 BTC, with purchases continuing on a daily basis, even during periods of high market volatility.
In May, the IMF reiterated that “efforts will continue” to ensure El Salvador does not accumulate additional Bitcoin.
President Nayib Bukele has publicly rejected the idea of stopping purchases, stating in March that the policy would continue regardless of external pressure.
IMF praises economic performance
While flagging ongoing concerns around Bitcoin, the IMF struck a positive tone on El Salvador’s broader economic performance.
The fund said the economy is expanding faster than expected, with real GDP growth projected to reach around 4% this year and strong prospects for next year.
The IMF also noted that fiscal targets remain on track, foreign reserves are increasing, and domestic borrowing has declined.
Structural reforms have advanced, including new banking stability legislation, the adoption of Basel III standards, and updated anti-money laundering rules.
The IMF said it will maintain close engagement with Salvadoran authorities as it works toward a staff-level agreement to complete the second EFF review, underscoring that Bitcoin-related risks remain under scrutiny even as the country’s macroeconomic outlook improves.
El Salvador’s Bitcoin initiatives have reached a crucial juncture as the International Monetary Fund (IMF) has revealed progress in their negotiation talks. Currently, El Salvador and the IMF are working together to address concerns surrounding the country’s Bitcoin project and the sale of its government-backed e-wallet, Chivo. With the talks centred around enhancing transparency and
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]]>In spite of the current downturn in the price of Bitcoin, El Salvador has purchased more than $100 million in BTC. This is considered the largest single-day purchase of the token by the country. El Salvador Makes Record Bitcoin Buy Amid Market Sell-Off This week, the country again made headlines for buying up 1,090 Bitcoin
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]]>El Salvador is preparing to host the world’s first government-sponsored Bitcoin conference, set for November 12–13, 2025, in San Salvador’s historic center. The event, branded Bitcoin Histórico, will be staged by the National Bitcoin Office and is being described as a “testament to an extraordinary moment in history.” Details About The El Salvador Bitcoin Conference
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]]>Bitcoin’s march to reclaim the $120,000 milestone again is gaining pace with a combination of tightening supply and interesting events around the world.
Harvard University recently revealed its $116.6 million allocation to BlackRock’s IBIT Bitcoin ETF. Meanwhile, El Salvador is welcoming Bitcoin-focused investment banks, while regulatory delays have put Japan’s first crypto ETF on hold.
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El Salvador Opens Door To Bitcoin Investment Banks
El Salvador has passed a landmark Investment Banking Law that allows regulated investment banks, which are distinct from commercial lenders, to hold Bitcoin and other digital assets on their balance sheets. These institutions will cater exclusively to sophisticated investors and are required to have a Digital Asset Service Provider license and at least $50 million in starting capital.
The law, which was approved on Thursday, effectively paves the way for banks to choose to operate entirely as Bitcoin banks. Government officials say the framework is designed to attract foreign capital and cement the country’s status as a crypto finance hub. Critics, however, warn that the benefits may largely favor wealthy institutions over everyday Salvadorans.
This move comes as Japan’s entry into the Bitcoin ETF market is being held back. While US-based Bitcoin ETFs are making ground with inflows and jurisdictions like El Salvador move forward, Japan is yet to be home to a Spot Bitcoin ETF.
There were multiple reports this week about Japan’s SBI Holdings filing for spot crypto ETFs. However, the company has clarified that it has not yet submitted any applications for crypto-related ETFs. Nonetheless, the company did note in its Q2 2025 earnings report that it is planning to launch crypto-asset-linked investment trusts and ETFs upon regulatory approval.
Harvard University Commits Over $116 Million To Bitcoin ETF
Institutional confidence in Bitcoin received a major boost with Harvard University’s decision to invest $116.6 million into BlackRock’s IBIT spot Bitcoin ETF. This interesting investment was revealed in a recent filing with the US Securities and Exchange Commission by the Harvard Management Company.
This sizable position elevates Bitcoin to a prominent role within Harvard’s equity portfolio, which is a notable shift in its investment choices, particularly following its decision last quarter to scale back exposure to several major Big Tech stocks. According to the filing, the endowment purchased 1.9 million shares of iShares Bitcoin Trust, valued at $116.6 million. This value places Bitcoin as the fifth-largest holding in Harvard’s equity portfolio behind Microsoft, Amazon, Booking Holdings, and Meta.
Harvard’s allocation aligns closely with investment trends in the US, as US spot Bitcoin ETFs have attracted more than $54 billion in inflows since their launch in early 2024.
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The move comes at a time when liquidity on major exchanges is tightening, and it has contributed to an increase in bullish sentiment surrounding Bitcoin.
At the time of writing, Bitcoin is trading at $118,320, up by 4% in the past seven days.
Featured image from Unsplash, chart from TradingView
Pakistan and El Salvador have become the unlikeliest of partners after teaming to explore public sector utilities for cryptocurrencies. At the core of the agreement is Bitcoin, with both parties keen on bolstering their BTC holdings in the coming months. El Salvador And Pakistan Team Up For Bitcoin Partnership Nearly five years since El Salvador
The post Pakistan, El Salvador Strike Landmark Bitcoin-Focused Bilateral Agreement appeared first on CoinGape.
]]>Cardano’s Hoskinson Says He Rejected El Salvador Deal Over MS-13 Risk CoinCentral
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Central American nation El Salvador continues to prioritize Bitcoin despite a recent warning from the International Monetary Fund (IMF). The nation’s economic minister on Wednesday said that despite being asked to reduce its BTC purchases in light of a $1.4 billion loan agreement, Bukele’s government is still accumulating. The IMF, however, had recently claimed that the Salvadorian government was complying with loan conditions.
Nayib Bukele’s El Salvador In Breach Of IMF Loan Agreement?
El Salvador’s Economy Minister Maria Luisa Hayem has recently assured that Bukele’s government is still buying BTC despite being asked to reduce its purchases. The IMF’s $1.4 billion loan agreement prohibits the entity from doing so.
However, data from the Salvadorian government’s Bitcoin office shows that the nation continues to purchase 1 BTC every day. To this date, Bukele’s government holds over 6100 BTC valued at over $570 million.
On the contrary, a recent report by CoinGape revealed that El Salvador complied with the loan conditions. Notably, the Central American country paused its BTC purchases with public sector funds recently, abiding by the IMF’s loan agreement.
However, the Salvadorian economy minister’s recent comments have stirred up contrary discussions on the matter.
Meanwhile, the broader market’s bullish action has added an optimistic tint to Bukele’s Bitcoin accumulation venture. BTC price today traded at the $95K price level as of press time, gradually nearing previous highs.
Notably, El Salvador’s Bitcoin holdings also continue to rise in tandem with this broader rising price action. On the other hand, the Salvadorian government has not disclosed its current sources for BTC accumulation. As a result, while global market watchers are left speculating, the IMF blames the nation for not keeping the accord.
Nevertheless, BTC continues to secure a hotspot on institutions’, nations’, and investors’ radars, showcasing the potential for massive returns ahead.
The post El Salvador Doubles Down on Bitcoin Despite IMF Warnings appeared first on CoinGape.
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Fresh reports from the International Monetary Fund (IMF) indicate that El Salvador is complying with loan conditions. One key aspect of the loan conditions revolves around the halting of Bitcoin purchases with public funds, but President Nayib Bukele is keen on sidestepping hurdles.
El Salvador Halts Bitcoin Accumulation To Comply With The IMF
According to details of a press briefing by the IMF’s Western Hemisphere Department, El Salvador has paused its Bitcoin purchases with public sector funds. Rodrigo Valdes, the IMF’s Director of the Western Hemisphere Department, confirmed the changing government stance to achieve compliance with loan conditions.
As part of a $1.4 billion loan deal, the IMF required El Salvador to halt public sector accumulation of Bitcoin. Despite initial pushback from President Nayib Bukele, Valdes confirms that the government is holding its end of the bargain.
Valdes disclosed that El Salvador is in full compliance with its loan obligations, squashing speculation that the country violates its terms.
“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,” said Valdes.
Apart from shuttering its public sector BTC accumulation, the IMF notes that the country is also ticking the boxes in fiscal transparency and structural reforms. With the current Bitcoin price close to $100K, the value of El Salvador’s 6,158 BTC stands at $583 million.
Nayib Bukele Continues Daily BTC Accumulation
Despite the requirement against public sector Bitcoin purchases, the Latin American country continues to stack up its BTC holdings. According to data from the National Bitcoin Office, El Salvador is buying one Bitcoin per day in defiance of the IMF.
Rather than limit its BTC accumulation to public sector funds, El Salvador’s President Nayib Bukele is exploring alternative sources. Bukele has previously disclosed that the country’s Bitcoin accumulation will continue amid IMF pressure to limit its options.
The National Bitcoin Office has not publicly disclosed its funding sources for the daily BTC purchases, stoking a wave of speculation. The consensus is that the government is tapping non-public sector entities to power its daily Bitcoin accumulation spree.
The country may be funding its daily purchases from the profits of its Strategic Bitcoin Reserve, with the average purchase price sitting at around $44,000. Other countries, keen on mirroring El Salvador’s lead, are eyeing a Strategic Bitcoin Reserve, with Samson Mow making a strong case for Japan.
Apart from financial inclusion and reducing its dollar dependency, President Bukele is eyeing a raft of economic benefits. Cathie Wood’s Ark Invest predicts the Bitcoin price to climb as high as $1.5 million per BTC by 2030, potentially sending the value of El Salvador’s holdings to astronomical levels.
The post El Salvador Pauses Public Sector Bitcoin Purchases To Align With IMF Loan Conditions appeared first on CoinGape.
]]>El Salvador and Paraguay have signed an agreement to enhance oversight of digital asset service providers.
The Memorandum of Understanding (MOU) was signed on March 7, 2025, between Paraguay’s Secretariat for the Prevention of Money Laundering (SEPRELAD) and El Salvador’s National Commission of Digital Assets (CNAD). The agreement aims to strengthen cooperation in supervising cryptocurrency-related activities.
El Salvador Agreement To Strengthen Crypto Regulations
According to a press release, the agreement focuses on monitoring digital asset service providers and preventing unauthorized operations in both countries. SEPRELAD and CNAD will work together to detect and control unlicensed crypto activities.
Authorities aim to enhance regulations on money laundering, terrorist financing, and the proliferation of weapons of mass destruction. Moreover, CNAD President Juan Carlos Reyes García emphasized the importance of cross-border collaboration.
“This agreement not only fosters innovation but also ensures financial integrity in a borderless economy,” Reyes posted on X.
Concurrently, SEPRELAD stated on its website that the agreement will help Paraguay and El Salvador exchange information and strengthen regulatory frameworks.
Paraguay Approach to Crypto Oversight
The Central Bank of Paraguay has recently reaffirmed its stance on cryptocurrencies. It stated that digital assets are not registered or authorized by the central bank or the country’s Superintendencia de Valores, which was established in 2023. The bank advised citizens to avoid interacting with unregulated crypto entities.
Reyes pointed to this statement as a reason why the regulatory agreement is essential. He did not provide further details on whether Paraguay would adopt a licensing system similar to El Salvador’s.
However, the partnership suggests an effort to increase transparency and oversight of digital asset service providers.
El Salvador Expanding Role in Crypto Regulation
El Salvador has previously signed a similar agreement with Argentina’s Comisión Nacional de Valores (CNV) in December 2024. The CNAD is the main regulatory body for digital assets in El Salvador and issues Digital Asset Service Provider (DASP) licenses.
Despite its agreement with the International Monetary Fund (IMF), El Salvador has continued to buy Bitcoin. The IMF had set conditions in a $3.5 billion financial deal, limiting government Bitcoin purchases. However, President Nayib Bukele has stated that the country will keep adding to its Bitcoin holdings.
El Salvador now holds 6,111 BTC, worth approximately $507.88 million. The country has in addition acquired 40 BTC in the past 30 days, which is more than its usual rate of one BTC per day. Meanwhile, the government has until July 2025 to comply with the IMF’s restrictions, but recent purchases indicate that it is accelerating acquisitions before the deadline.
Moreover, this move comes amid Microstrategy’s criticism after its stock fell over 49% since its last year November highs amid the Bitcoin price crash.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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