IMF Reports No Change in El Salvador's Bitcoin Assets
El Salvador's Bitcoin holdings have attracted attention in the latest update from the International Monetary Fund (IMF). In a recent agreement with local authorities, the IMF has confirmed that El Salvador has made commendable progress in all areas, including Bitcoin, as part of its fund facility arrangement.
According to the IMF's press release, published on May 27, the country will continue efforts to maintain the unchanged total amount of Bitcoin held across all government-owned wallets. This move is consistent with the program commitments and aimed at winding down the public sector's participation in the Chivo wallet by the end of July.
While this initial review by the IMF acknowledges El Salvador's Bitcoin holdings as previously disclosed, the country has now amassed approximately 6,189 to 6,190 Bitcoin, equating to around $675 million to $678 million. This increase suggests that new purchases have been made, though the IMF maintains its focus on transparency and limiting state intervention.
The $1.4 billion arrangement, approved by the IMF Executive Board on February 26, includes an initial disbursement of $120 million. Further disbursements hinge on the approval of this update by the board. Key reforms for Bitcoin under this arrangement involve removing Bitcoin's mandatory legal tender status, full disclosure of government and public sector's BTC holdings, and the wind-down of the state-run Chivo Wallet.
In a diplomatic balancing act, El Salvador continues to build its Bitcoin stack, while the IMF emphasizes transparency and regulatory rollback. Both parties seem to be harmonizing their respective narratives on Bitcoin holdings, at least for the time being.
[1] "El Salvador's Bitcoin Stash Grows Despite Agreement to Keep It Unchanged, IMF Says" - Bloomberg
[4] "El Salvador's Bitcoin Bet Puts Central American Country at odds with IMF" - New York Times
[5] "As El Salvador Buys More Bitcoin, The Price of Cryptocurrency Climbs" - Reuters
[1] El Salvador, despite an agreement to keep its Bitcoin holdings unchanged, continues to increase its Bitcoin stash according to the IMF's update.
[4] The growth of El Salvador's Bitcoin holdings, currently valued at around $675 million to $678 million, presents an area of potential contention between the country and the IMF, who maintain a focus on transparency and limiting state intervention in the Bitcoin industry and finance, especially in technology-driven initiatives like the Chivo wallet.
