The International Monetary Fund (IMF) has pushed back against El Salvador’s claims of accumulating new Bitcoin reserves, saying the country has not purchased new Bitcoin and is merely shuffling holdings between wallets.
In a July 24 briefing, IMF Communications Director Julie Kozack addressed a question regarding ongoing Bitcoin purchases by the El Salvador government. Kozack said there has been no change in the country’s official Bitcoin holdings since the $1.4 billion loan agreement, and what the government calls “new buys” are actually internal wallet transfers.
Her remarks appear to directly contradict statements from President Nayib Bukele and the National Bitcoin Office (ONBTC). They recently claimed that the government’s Bitcoin reserves now stand at 6,250.18 BTC.
Bukele and ONBTC have positioned the reserve increase as part of a long-term accumulation strategy. However, the IMF insists that the wallet shifts are non-economic transfers, violating no terms but also not signaling new investment.
IMF Maintains Strict Oversight
The IMF emphasized that El Salvador remains under strict observation as part of its ongoing loan deal. The agreement does not permit further Bitcoin purchases without review. The Fund reiterated concerns about Bitcoin’s volatility and risk, even as it acknowledged El Salvador’s improving economic outlook.
This standoff is the latest in a series of tensions between El Salvador’s pro-Bitcoin policies and traditional financial institutions. The IMF has historically warned about Bitcoin’s impact on monetary policy, financial stability, and debt sustainability.
The technical distinction between wallet transfers and new purchases matters significantly for international financial monitoring, as the IMF seeks to track actual changes in government cryptocurrency exposure rather than administrative movements between addresses.
The lack of transparency has renewed debate over whether El Salvador is fully compliant with the IMF’s loan conditions and raises questions about transparency in Bitcoin reporting.
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