BOOMBOX COMMUNITY

Did El Salvador Lie? The Country Hasn’t Bought Any Bitcoin...

Did El Salvador Lie? The Country Hasn’t Bought Any Bitcoin Since Receiving $1.4 Billion Loan

Did El Salvador Lie? The Country Hasn’t Bought Any Bitcoin Since Receiving .4 Billion Loan


Key Insights

  • The IMF has just confirmed that El Salvador did not purchase any Bitcoin this year, despite government claims.
  • The government reported its internal wallet transfers as a sign of its “growing” Bitcoin reserves.
  • President Bukele’s administration continued to announce daily BTC buying after signing an IMF loan deal that prohibited it.

Surprisingly, the International Monetary Fund (IMF) has just confirmed that El Salvador made no new Bitcoin purchases this year.

This is such a problem, because the country repeatedly claimed to be accumulating one Bitcoin per day. These findings have created some controversy about the government’s transparency, especially after President Nayib Bukele insisted for months that the country was actively adding more Bitcoin to its reserves.

Daily Bitcoin Purchases Were a Lie

Since early this year, El Salvador’s government including the National Bitcoin Office claimed it was buying one Bitcoin per day. 

These announcements were widely shared across social media and echoed by crypto news outlets. In fact, on March 4, Bukele reconfirmed the initiative on X, with the Bitcoin Office later claiming that the country’s BTC holdings were more than 6,100 coins.

However, the IMF’s 15 July report showed that no such purchases happened.

According to the Fund, the public sector’s Bitcoin holdings have remained unchanged since December of last year, when El Salvador received a $1.4 billion loan through the IMF’s Extended Fund Facility (EFF). In essence, the wallet balance increases that caused all the hype were merely funds being consolidated from multiple government-controlled wallets.

Behind the Curtain

The IMF report points out that the illusion of increased BTC holdings likely came from movements between internal wallets. This trend created a fake image of daily purchases, and did not represent actual market activity or fresh investments with public funds.

In addition to this, the report pointed out minor fluctuations in deposits to the government’s Chivo Bitcoin wallet. These were also resolved internally without further public spending. In other words, while numbers may have shifted on paper or in digital wallets, El Salvador made no genuine Bitcoin buys at all this year.

Bitcoin: Political Theater or Strategic Defiance?

President Bukele, who is known for being passionate about Bitcoin, has often painted El Salvador as a trailblazer in digital currency adoption. In 2021, El Salvador became the first country to make Bitcoin legal tender. However, after financial pressure and negotiations with the IMF, the government revised its stance early this year.

Under the terms of its IMF agreement, El Salvador was required to halt all new BTC purchases with taxpayer money, and scale back its public involvement in the crypto space. Yet, Bukele and the Bitcoin Office continued to imply that accumulation was ongoing.

Even after the IMF sent a reminder in March to honor the agreement, Bukele responded defiantly, posting, “No, it’s not stopping… and it won’t stop in the future.” Despite his public statements, the latest IMF report confirms that he eventually complied with the loan terms, at least in practice.

The IMF’s findings confirm that El Salvador is keeping up with the terms of the loan. Besides, the fallout from this blatant lie may be long-lasting. The idea that the government misled the public and the crypto community could damage its reputation. It could also affect its future crypto-related moves.

The post Did El Salvador Lie? The Country Hasn’t Bought Any Bitcoin Since Receiving $1.4 Billion Loan appeared first on Live Bitcoin News.





Source link

log in

[nextend_social_login]

Captcha!
Forgot password?

forgot password

Back to
log in