The International Monetary Fund (IMF) has previously verified that El Salvador is honoring its commitment to cease Bitcoin accumulation within its public sector. Despite this assertion, data from blockchain transactions suggests that El Salvador is in fact quietly expanding its Bitcoin reserves.
The IMF's Director of the Western Hemisphere Department, Rodrigo Valdes, affirmed on April 26 that El Salvador is adhering to the agreed policy of not accumulating Bitcoin within its fiscal sector. Valdes commended El Salvador's efforts towards governance and transparency reforms, characterizing them as significant progress.
Furthermore, Valdes emphasized the importance of fiscal reforms in El Salvador, which could potentially unlock up to $3.5 billion in financial aid and stimulate private sector investments for sustainable economic growth.
El Salvador's commitment to these reforms is linked to the IMF loan agreement of $1.4 billion valid until December 2024. As part of this agreement, the government was required to revise its Bitcoin-related policies, such as discontinuing mandatory Bitcoin acceptance for merchants and limiting Bitcoin tax payments.
However, despite the IMF's claims, recent blockchain data indicates that El Salvador has not halted its Bitcoin endeavors. As reported by the National Bitcoin Office, El Salvador acquired 8 BTC in the last week and 31 BTC in the past month, bringing the country's total BTC holdings to 6,159 BTC, valued at over $580 million.
Stacy Herbert, Director of the National Bitcoin Office, highlighted El Salvador's intention to continue expanding its Bitcoin reserves to retain its lead in the cryptocurrency sphere. This commitment has positioned El Salvador as a pioneering country in this field.
El Salvador's embrace of technological advancements has also garnered international recognition. Stablecoin issuer Tether relocated its headquarters to El Salvador due to its favorable regulatory climate, while the country signed a letter of intent with NVIDIA to establish autonomous artificial intelligence infrastructure. These initiatives reinforce El Salvador's emergence as an innovation hotspot in Latin America.