IMF Questions El Salvador’s BTC Buys — Bitcoin Hyper Rises on Strong Market Confidence

El Salvador, the first country to adopt Bitcoin as legal tender, has paused its $BTC buying spree – at least according to the IMF.

That’s despite the country initially saying, back in December 2024, that it would continue buying Bitcoin despite the IMF’s ban.

A recent IMF report showed that the Central American country hasn’t increased its Bitcoin reserves since signing a ‘non-accumulation’ agreement with the International Monetary Fund earlier this year.

What led to El Salvador’s sudden change, and are they feeling (non) buyer’s remorse as Bitcoin reaches new highs?

Time for a closer look.

The move is part of a broader economic reform package linked to a $1.3 billion Extended Fund Facility from the IMF. While the program aims to strengthen public finances and rebuild financial buffers, it also explicitly emphasizes reducing Bitcoin-related risks.

Specifically, the agreement’s terms mandated that El Salvador to:

• Stop requiring merchants to accept Bitcoin payments (can still do so voluntarily)
• Cease additional purchases of Bitcoin for the national treasury

Now, a few months in, the IMF is checking on the agreement to see if El Salvador – despite all the bluster – is fulfilling its obligations. There’s a strong incentive for the country to follow through: an additional $2B loan from the IMF could be offered afterward.

In keeping with that agreement, El Salvador’s government has committed to keeping public sector Bitcoin holdings unchanged and plans to exit its stake in Chivo, the state-run Bitcoin wallet, by the end of July.

These measures follow IMF recommendations to prevent increased exposure to crypto’s volatility and to strengthen oversight of digital assets.

So, what should we think about charts like this – purportedly showing El Salvador steadily buying one $BTC each day?

Did the IMF miss something important? Or is El Salvador’s strongly pro-Bitcoin stance more talk than action?

In the words of the report:

Most end-March targets were met with margins, and the overall stock of Bitcoin held by the public sector has remained unchanged since program approval.

—IMF, 2025 ARTICLE IV CONSULTATION

Most end-March targets, on the primary balance, external and financial buffers, were met with margins, and the overall stock of Bitcoin held by the public sector has remained unchanged since program approval.

What about that ‘1-$BTC-per-day’ chart? The IMF states it doesn’t indicate outright purchases, but ‘Increases in Bitcoin holdings in the Strategic Bitcoin Reserve Fund reflect the consolidation of Bitcoin across various government-owned wallets.’

The timing of El Salvador’s restraint is remarkable. As Bitcoin breaks through new all-time highs and market sentiment reaches extreme greed levels, many expected the country to double down on its BTC treasury strategy.

Instead, Bukele’s government appears to be prioritizing financial stability and international credibility over expanding its Bitcoin reserves.

Is this a special case, or does it reveal some of the limits of Bitcoin’s ambitions? In other words, there are two important questions:

• Is El Salvador’s pause a short-term move to satisfy IMF conditions, or a longer-term shift away from BTC maximalism?
• Could the government’s hands-off approach – even during a bull market – be a missed opportunity to capitalize on Bitcoin’s momentum?

It’s probably safe to say that El Salvador’s reaction is more about the specifics of the IMF loan than any doubts about Bitcoin. Keep in mind that even during the purchase pause, President Bukele has been quick to post on X about his Bitcoin wins.

But it does suggest that even Bitcoin’s significant and increasing cultural influence encounters strict financial realities. Does this open the door for a Bitcoin upgrade?

What if Bitcoin could be fully integrated into the growing crypto economy – including ZK (zero-knowledge) proofs, DeFi protocols, and more?

Would El Salvador still need to rely on the IMF?

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Add in 241% APY for presale staking, and it’s no wonder that investors are rushing to snatch up $HYPER tokens at the current price of $0.01235.

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Bitcoin is on the verge of becoming an overwhelmingly dominant global financial force. But while crypto has proven to be highly disruptive, El Salvador’s situation highlights the delicate balancing act that emerging economies face when adopting crypto.

On one hand, BTC provides a potential hedge against inflation and reliance on the dollar. On the other hand, it exposes governments to market volatility that can make debt management and relations with global financial institutions more complicated.

The IMF report shows a country tempering its Bitcoin ambitions. Does that open the door for Bitcoin Hyper, a Bitcoin upgrade?

As always, do your own research – this isn’t financial advice.

This is a sponsored article. Opinions expressed are solely those of the sponsor and readers should conduct their own due diligence before taking any action based on information presented in this article.