A new report has shook up El Salvador’s bold bitcoin story. The whole year, President Nayib Kumle and the National Bitcoin office promised that they bought a BTC every day.
Public trackers even showed holdings that climbed past 6 102 BTC. Nevertheless, the IMF’s July 15 -article IV consultation says that there were no new purchases because they extended the $ 1.4 billion foundation facility was approved in December 2024.
Internal wallet stops created illusion of buying
According to IMF report, The increase in public Bitcoin did not come from new expenses. Instead, government wallets moved around.
These transfers made balances appear on public dashboards. But it was just internal shifts. They did not take the taxpayers’ money or involved the market. Small ups and downs in the Chivo -E wall also came from internal corrections, not new deposits.
Turns out that the IMF actually got El Salvador to stop Bitcoin purchases to get a Fiat loan.
Footnote #9 says they have just made it seem like they have continued to buy but actually have only consolidated multi -government wallets.
Source: … pic.twitter.com/46afu1oi08
– Magoo PHD (@Hodlmagoo) July 17, 2025
Press Bitcoin Legal Tender Reversal
Back in 2021 El Salvador took headlines by making Bitcoin a legal tender. That movement started cheering and warnings around the world. Reports show that the country flipped that decision in January 2025 under pressure from international lenders.
They stripped Bitcoin of its legal status and agreed to stop using public funds for more coins. The IMF now confirms that the promises that are kept true.
Deadline Tissue Chairs for Chivo E -wallet output
Based on reports, the government must terminate public involvement in the Chivo system by July 31, 2025. That date is just around the corner. El Salvador has also promised to unwind Fidebitcoin, the general bitcoin trusts that it created. Both steps aim to increase fiscal openness and keep the extended fund plant on the right track.
El Salvador President Nayib Bukele. Source: Getty Images
Analyst Eye Confidence and Transparency Questions
Some experts say that the big takeaway is about trust. Mix coins between wallets while claiming that new purchases can damage the government’s credibility. Citizens and investors may begin to wonder what more can be spun into a story.
Image: REUTERS/Johannes P. Christo/File Photo
Although no new money switched hand, the abuse between claims and reality has set a spotlight on how data is shared.
IMF gave credit for fulfilling its program goals. Nevertheless, the coming weeks will show if the government follows all its commitments.
Clearing out Chivo and the resolution of Fiditcoin are great features. If El Salvador stays at the pitch, it can restore its story. If not, skeptics will find new reasons to doubt each future Bitcoin approach.
Image from Unsplash, charts from TradingView
Editorial process For Bitcoinist is centered on delivering thoroughly investigated, correct and impartial content. We maintain strict purchasing standards, and each page undergoes frequent review of our team of top technological experts and experienced editors. This process ensures integrity, relevance and value of our content for our readers.
