IMF Exposes El Salvador’s Bitcoin Lies: No New BTC Purchases Since 2023
- IMF Audit Reveals El Salvador’s Bitcoin Deception
- How Did El Salvador Mislead the Public?
- Bitcoin Office’s Dubious Claims
- Failed Bitcoin Projects: A Growing List
- Why Does This Matter?
- What’s Next for El Salvador?
- FAQ: El Salvador’s Bitcoin Controversy
The International Monetary Fund (IMF) has accused El Salvador of misleading the public about its bitcoin purchases, revealing that the country hasn’t bought any BTC since December 2023. Despite claims from El Salvador’s Bitcoin Office of regular acquisitions, the IMF’s audit shows only internal wallet transfers. This revelation casts doubt on President Nayib Bukele’s Bitcoin-friendly policies, which include stalled projects like Bitcoin City and defunct Volcano Bonds. Here’s the full breakdown of the IMF’s findings and what it means for El Salvador’s crypto experiment.
IMF Audit Reveals El Salvador’s Bitcoin Deception
The IMF’s recent report on El Salvador’s $1.4 billion Extended Fund Facility (EFF) agreement exposed a glaring discrepancy: the Central American nation hasn’t purchased Bitcoin since late 2023, contrary to its public claims. The Bitcoin Office, which posts frequent updates on X (formerly Twitter), insists that El Salvador buys 1 BTC daily. However, the IMF found that the country’s public sector Bitcoin holdings “remained unchanged” since the program’s approval. Instead, the reported transactions were merely internal transfers between government-controlled wallets, such as the Strategic Bitcoin Reserve Fund and the Chivo e-wallet system.
How Did El Salvador Mislead the Public?
The IMF’s footnotes clarify that Bitcoin balance increases in the Strategic Reserve Fund resulted from consolidating holdings across state wallets—not new purchases. Minor fluctuations in Chivo wallet balances were attributed to customer deposit activity, not government acquisitions. This directly contradicts President Bukele’s March 4 declaration on X: “No, it’s not stopping. If it didn’t stop when Bitcoin was at its lowest and most critics told us to stop, it won’t stop now—or ever. Proof of work > proof of whining.” Despite this bravado, El Salvador’s actions align with IMF demands to halt new BTC purchases under the EFF agreement.
Bitcoin Office’s Dubious Claims
As of mid-2025, the Bitcoin Office’s website still displays a 30-day increase of 30 BTC (totaling 6,242.18 BTC). The IMF’s findings suggest these figures are either outdated or misrepresented. TradingView data shows no significant BTC accumulation by El Salvador-linked addresses since 2023, further undermining the government’s narrative.
Failed Bitcoin Projects: A Growing List
El Salvador’s crypto ambitions extend beyond questionable purchases:
- Bitcoin City: Announced in 2021 as a tax-free, zero-emission metropolis in La Unión, this project remains a blueprint with no construction.
- Volcano Bonds: The $1 billion Bitcoin-backed bond, delayed in March 2022 due to the Ukraine war, never materialized.
- Geothermal Mining: Bukele’s 2021 plan for volcano-powered BTC mining is reportedly inactive.
- Chivo Pets Hospital: This Bitcoin-funded initiative closed permanently in March 2025.
Other defunct ventures include the Chivo Wallet (plagued by adoption issues) and an NFT casino that never launched.
Why Does This Matter?
El Salvador’s Bitcoin adoption made headlines in 2021 as a bold economic experiment. However, the IMF’s report suggests the country is prioritizing financial stability over crypto advocacy. BTCC analysts note that while Bukele’s rhetoric energizes crypto enthusiasts, the reality—like Bitcoin’s price volatility—is more complicated. “This isn’t just about transparency,” says a BTCC market strategist. “It’s about whether a nation can reconcile crypto idealism with fiscal responsibility.”
What’s Next for El Salvador?
The IMF’s findings may pressure El Salvador to clarify its Bitcoin strategy. With the EFF agreement extending to 2026, further non-compliance could jeopardize funding. Meanwhile, crypto advocates wonder if other nations will follow El Salvador’s lead—or learn from its missteps.
FAQ: El Salvador’s Bitcoin Controversy
Did El Salvador really stop buying Bitcoin?
Yes. The IMF confirmed no new purchases since December 2023, only internal wallet transfers.
What happened to Bitcoin City?
Four years post-announcement, construction hasn’t begun. It remains a proposal.
Are Volcano Bonds still happening?
Unlikely. Delayed indefinitely in 2022, they’ve seen no progress since.
How much Bitcoin does El Salvador actually hold?
Per the IMF, holdings are static at ~2,800 BTC (excluding customer funds in Chivo wallets).
