IMF Exposes El Salvador’s Bitcoin Lies: No New BTC Purchases Since 2023

• IMF Report Debunks El Salvador’s Daily Bitcoin Purchase Claims
• The Wallet Shell Game: How El Salvador Created the Illusion of Activity
• Bukele’s Defiance vs. Reality: A Growing Disconnect
• Failed Promises: Bitcoin City and Volcano Bonds Collapse
• Abandoned Projects Pile Up
• Why This Matters for Crypto Adoption
• FAQ: Your Questions Answered

The IMF has accused El Salvador of misleading the public about its bitcoin purchases, revealing that the government hasn’t bought any BTC since December 2023. Despite claims of daily acquisitions, the IMF’s report shows only internal wallet transfers. Meanwhile, key projects like Bitcoin City and Volcano Bonds remain stalled, raising questions about the country’s crypto strategy. Here’s the full breakdown.

IMF Report Debunks El Salvador’s Daily Bitcoin Purchase Claims

In a bombshell revelation, the International Monetary Fund (IMF) stated that El Salvador hasn’t acquired any new Bitcoin since December 2023. This directly contradicts the government’s public statements about purchasing 1 BTC daily. According to the IMF’s first review of El Salvador’s $1.4 billion Extended Fund Facility (EFF) agreement, the country’s public Bitcoin holdings have remained unchanged since the program’s approval. The reported BTC movements were merely internal transfers between government-controlled wallets, specifically between the Bitcoin Strategic Fund and the Chivo e-wallet.

The Wallet Shell Game: How El Salvador Created the Illusion of Activity

The IMF’s report included a critical footnote: “Increases in Bitcoin holdings in the Bitcoin Strategic Reserve Fund reflect consolidation of Bitcoin across multiple government-owned wallets.” Essentially, while the government’s X account boasted about “new purchases,” they were just shuffling existing coins. Minor fluctuations in Chivo wallet balances came from customer deposits—not public acquisitions. This sleight of hand occurred despite the IMF’s explicit requirement for El Salvador to halt new Bitcoin purchases under the EFF agreement.

Bukele’s Defiance vs. Reality: A Growing Disconnect

President Nayib Bukele publicly doubled down on March 4, posting on X: “No, it won’t stop. If it didn’t stop when the world’s operating system crashed and most ‘Bitcoiners’ abandoned us, it won’t stop now.” Yet the IMF’s findings suggest his government has quietly complied with their demands. The Bitcoin Office’s website currently shows 6,242.18 BTC held—with only a 30 BTC increase in 30 days (likely from wallet consolidation).

Failed Promises: Bitcoin City and Volcano Bonds Collapse

Remember Bitcoin City? Announced in late 2021 with grand promises of zero taxes and volcanic geothermal mining, the project remains a ghost town four years later. Similarly, the $1 billion Volcano Bonds—meant to fund Bitcoin mining infrastructure—were indefinitely postponed in March 2022. Finance Minister Alejandro Zelaya blamed global market volatility and Russia’s invasion of Ukraine, stating they had “tools almost ready” for a March 15-20 launch window before geopolitical chaos intervened.

Abandoned Projects Pile Up

The cracks in El Salvador’s Bitcoin experiment keep widening:

• Geothermal Mining: The much-hyped volcanic energy mining project has been inactive since 2021
• Chivo Pets Hospital: The Bitcoin-funded veterinary initiative shut down completely in March
• NFT Casino: Another abandoned component of the Chivo ecosystem

Why This Matters for Crypto Adoption

El Salvador’s case serves as a cautionary tale about the gap between crypto hype and execution. While the country made history as Bitcoin’s first adopter, the IMF’s findings reveal concerning transparency issues. For institutional investors watching from the sidelines, this reinforces skepticism about government-led crypto initiatives. As one BTCC analyst noted: “Transparency matters more than tweets when building financial credibility.”

FAQ: Your Questions Answered

What did the IMF actually say about El Salvador’s Bitcoin?

The IMF confirmed El Salvador hasn’t bought new Bitcoin since December 2023—all reported movements were internal wallet transfers.

Is Bitcoin still legal tender in El Salvador?

Yes, but the IMF has pressured the government to stop using public funds for additional purchases.

What happened to Bitcoin City?

No construction has begun nearly four years after its announcement. The project appears indefinitely delayed.

Will Volcano Bonds ever launch?

Unlikely in the NEAR term. The government postponed them in March 2022 citing global instability, with no updates since.