- El Salvador halts Bitcoin buying amid IMF loan conditions.
- Bitcoin no longer legal tender in El Salvador.
- Government Bitcoin reserves remain unchanged since February.
El Salvador has stopped its daily Bitcoin purchases as of February 2025, according to key officials involved in the International Monetary Fund’s $1.4 billion loan agreement with the country. This directly contradicts previous government statements.
The halt in Bitcoin purchases marks a significant shift away from El Salvador’s prior approach, reflecting the terms established by the IMF loan. The change impacts both the nation’s policy and its position in the cryptocurrency market.
El Salvador’s leadership, including President Nayib Bukele and financial officials Douglas Pablo RodrÃguez Fuentes and Jerson Rogelio Posada Molina, reached an agreement with the IMF to cease public-sector Bitcoin acquisitions. This agreement included halting new purchases as part of the $1.4 billion loan terms.
The immediate effects of this decision involve a cessation of Bitcoin as legal tender and potential implications for El Salvador’s financial and digital infrastructure. The Chivo digital wallet is being privatized, removing government involvement from its operation.
“The stock of Bitcoins held by the public sector remains unchanged.” — Douglas Pablo RodrÃguez Fuentes, IMF Report July 15, 2025
Financial outcomes include the stabilization of El Salvador’s public sector Bitcoin holdings, preventing new acquisitions that might otherwise influence market dynamics.
Politically, this may suggest increased influence of international bodies like the IMF in local matters.
Insights into potential outcomes highlight a shift in El Salvador’s cryptocurrency strategy. The static Bitcoin reserves may influence investment narratives, while the privatization of the Chivo wallet signals a regulatory transformation, aligning with broader fiscal policies.
