A recent report has cast doubt on El Salvador’s ambitious Bitcoin initiative. Throughout the year, President Nayib Bukele and the National Bitcoin Office pledged to acquire one Bitcoin every day.
The public tracker indicated that holdings had reached over 6,100 BTC. Yet, the IMF’s Article IV consultation from July 15 revealed that there had been no new acquisitions since the approval of a $1.4 billion extension fund in December 2024.
Wallet Transfers Created Misleading Impressions
The IMF report noted that the increase in Bitcoin within the public sector did not come from fresh investments. Rather, it stemmed from movements within government-owned wallets.
These internal transfers inflated the public dashboard’s balance without any real market engagement or use of taxpayer funds. Fluctuations in Chivo wallets were simply internal corrections, not new inflows.
The IMF succeeded in stopping Bitcoin purchases in El Salvador to secure a fiat loan.
Footnote #9 suggests it appears as if purchases continue, while in reality, it’s just a consolidation of multiple government wallets.
– Magoo PhD (@hodlmagoo) July 17, 2025
Pressure to Alter Bitcoin Legislation
Back in 2021, El Salvador made headlines by recognizing Bitcoin as legal tender, a move that drew both applause and caution worldwide. However, under pressure from international lenders, the country rolled back its decision in January 2025, as per the report.
They removed Bitcoin’s legal tender status, agreeing to halt using public funds for further purchases. This has been confirmed by the IMF.
Chivo Wallet Exit Deadline Approaching
The report indicates that the government must end its involvement with the Chivo system by July 31, 2025—a date that’s approaching quickly. El Salvador also pledged to launch Fidebitcoin, both steps aiming to enhance fiscal transparency and get the expansion fund back on track.
Concerns Over Trust and Transparency
Some analysts highlight that the main takeaway involves trust. Moving coins between wallets could undermine the government’s credibility. Citizens and investors might start questioning what else is being manipulated in this scenario.
Even without the exchange of new funds, the gap between assertions and reality underlines how data is disseminated. The IMF has praised the country for meeting program goals, but how the government adheres to its commitments in the coming weeks remains to be seen.
Resolving issues with Chivo and dismantling Fidebitcoin represents a significant step. If El Salvador follows through, it could rejuvenate the narrative. Otherwise, skeptics may unearth further reasons to doubt any optimistic Bitcoin claims in the future.
