The new report shook El Salvador’s bold Bitcoin story. All year round, President Naive Bukere and the National Bitcoin Office have promised to buy one BTC every day.
The public tracker also showed holdings climbing above 6,102 BTC. However, the IMF’s July 15th Article IV consultation states that there have been no new purchases since the $1.4 billion extension fund facility was approved in December 2024.
The movement of the internal wallet created the illusion of purchasing
According to an IMF report, the increase in Bitcoin in the public sector was not due to fresh spending. Instead, government-owned wallets moved coins.
These transfers made the balance appear on the public dashboard. But they were just internal shifts. They did not use taxpayer money or engage in the market. The small ups and downs of Chivo e wallets came from internal corrections, not new deposits.
The IMF was actually able to stop buying bitcoin in El Salvador to get a Fiat loan.
Footnote #9 says it makes you look like you’re continuing to buy, but in reality it’s just consolidating a large number of government wallets.
sauce :… pic.twitter.com/46afu1oi08
– Magoo PhD (@hodlmagoo) July 17, 2025
Pressure to reverse the legal bid for Bitcoin
In 2021, El Salvador grabbed the headlines by turning Bitcoin into fiat currency. The move has sparked cheers and warnings around the world. The country reversed its decision in January 2025 under pressure from international lenders, according to the report.
They agreed to strip Bitcoin from its legal tender status and to stop using public funds for more coins. The IMF has confirmed that these promises are true.
Deadline Leoom Chivo E Wallet exit is approaching
Based on the report, the government must terminate public sector involvement in the Chivo system by July 31, 2025. That date is round the corner. El Salvador also promised to unleash Fidebitcoin. Both steps aim to increase fiscal transparency and get the expansion fund facilities on track.
El Salvador President Nayib Bukele. Source: Getty Images
Analyst Eye Trust and Transparency Questions
Some experts say big takeaways are about trust. They claim that shuffling coins between their wallets can damage the government’s credibility. Citizens and investors may be wondering what else can be woven into the story.
Image: REUTERS/Johannes P. Christo/File Photo
Even if fresh money doesn’t change hands, the discrepancy between claims and reality shines a spotlight on how data is shared.
The IMF has given us credit for achieving the program’s goals. But the coming weeks will show whether the government will follow all of its commitments.
Clearing Chivo and dissolving Fidebitcoin is a big move. If El Salvador sticks to the plan, it can reset the story. Otherwise, skeptics will find new reasons to doubt all future Bitcoin announcements.
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