IMF Confirms El Salvador's Policy Change on Bitcoin

El Salvador has ceased using public funds to accumulate Bitcoin, confirmed by the International Monetary Fund (IMF) in a recent report on the country's financing program. According to the IMF, after June 2025, any increase in state BTC reserves will come from private donations rather than budgetary resources. The IMF also stated that it does not expect further accumulation of Bitcoin beyond the amount documented through verified donations, effectively ending the practice of regularly replenishing cryptocurrency reserves with state resources. El Salvador began purchasing Bitcoin in September 2021 when the cryptocurrency was adopted as legal tender. By March 2025, the state reserve exceeded 6102 BTC, with the National Bitcoin Office making a purchase of one Bitcoin after an agreement with the IMF. Additionally, part of the reserve was built through mining, with El Salvador extracting approximately 474 BTC from a geothermal power plant using energy from the Tecapa volcano between 2021 and 2024. This policy change is part of El Salvador's financial support program, with the IMF approving a 40-month program worth 1,400,000,000 dollars in February 2025, which included conditions to reduce risks associated with Bitcoin. As part of the agreements, the government agreed to limit state involvement in the cryptocurrency project, specifically requiring that state Bitcoin reserves remain unchanged by public funds. In January 2025, the parliament also amended Bitcoin usage rules, making its acceptance by the private sector voluntary and ceasing its use for tax payments, a key step towards meeting IMF requirements. The IMF has now confirmed that after June 2025, no public money will be used for Bitcoin accumulation, with any growth in reserves attributed to private donations.

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