A brand new report has shaken up El Salvador’s daring Bitcoin story. All 12 months lengthy, President Nayib Bukele and the Nationwide Bitcoin Workplace promised they have been shopping for one BTC every single day.
Public trackers even confirmed holdings climbing previous 6,102 BTC. But the IMF’s July 15 Article IV session says there have been no new purchases because the $1.4 billion Prolonged Fund Facility was authorised in December 2024.
Inner Pockets Strikes Created Phantasm Of Shopping for
Based on the IMF report, the rise in public‑sector Bitcoin didn’t come from contemporary spending. As an alternative, authorities‑owned wallets moved cash round.
These transfers made balances pop up on public dashboards. However these have been simply inside shifts. They didn’t draw on taxpayer cash or contain the market. Small ups and downs within the Chivo e‑pockets additionally got here from inside corrections, not new deposits.
Seems the IMF did the truth is make El Salvador cease Bitcoin purchases with the intention to get a fiat mortgage.
Footnote #9 states they’ve simply been making it seem as if they’ve been persevering with to purchase however the truth is have simply been consolidating multi authorities wallets.
Supply :… pic.twitter.com/46AFU1oi08
— Magoo PhD (@HodlMagoo) July 17, 2025
Stress On Bitcoin Authorized Tender Reversal
Again in 2021, El Salvador grabbed headlines by making Bitcoin authorized tender. That transfer set off cheers and warnings world wide. Studies present the nation flipped that call in January 2025 beneath strain from worldwide lenders.
They stripped Bitcoin of its authorized‑tender standing and agreed to cease utilizing public funds for extra cash. The IMF now confirms these guarantees held true.
Deadline Looms For Chivo E‑Pockets Exit
Primarily based on studies, the federal government should finish public‑sector involvement within the Chivo system by July 31, 2025. That date is simply across the nook. El Salvador has additionally promised to unwind Fidebitcoin, the general public Bitcoin belief it arrange. Each steps purpose to spice up fiscal transparency and maintain the Prolonged Fund Facility on monitor.
El Salvador President Nayib Bukele. Supply: Getty Pictures
Analysts Eye Belief And Transparency Questions
Some specialists say the massive takeaway is about belief. Shuffling cash between wallets whereas claiming new buys can harm the federal government’s credibility. Residents and traders might begin to marvel what else could be spun right into a story.
Picture: REUTERS/Johannes P. Christo/File Picture
Even when no contemporary cash modified palms, the mismatch between claims and actuality has put a highlight on how information will get shared.
The IMF gave credit score for assembly its program targets. But the approaching weeks will present if the federal government follows by means of on all its commitments.
Clearing out Chivo and dissolving Fidebitcoin are main strikes. If El Salvador sticks to the plan, it might reset its narrative. If not, skeptics will discover new causes to doubt each future Bitcoin announcement.
Featured picture from Unsplash, chart from TradingView
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