El Salvador Bitcoin treasury growth and IMF compliance

Treasury holdings and IMF compliance

El Salvador met the first review targets for its economic reform plan. The International Monetary Fund approved the compliance of El Salvador with requirements to receive upcoming disbursements from a $1.4 billion credit facility. This agreement, established in February 2025, allows El Salvador to receive $120 million more to stabilize the economy. The institution found the performance in applying the program strong. Authorities successfully implemented the agreed economic reform plan. Luis Cubeddu, Deputy Director of the Western Hemisphere Department, and Ivan Torres, Mission Chief for El Salvador, stated that most program targets set for the first review were comfortably met. The implementation of the structural benchmarks is progressing well. The IMF stated that efforts would continue to ensure the total amount of Bitcoin held across all government-owned wallets remains unchanged. This requirement exists because the IMF seeks to limit public sector involvement in Bitcoin activities. The country added dozens of BTC to its coffers after the IMF deal. These additions continue despite the IMF’s stance on public sector involvement. The IMF previously stated that stopping these purchases was one of the requirements to finalize the deal. The current Bitcoin holdings reach 7,798 BTC. This stash has a market valuation exceeding $640 million.

Mandatory acceptance ends

Legislative Decree No. 199 reformed the 2021 Bitcoin Law. This reform changed Bitcoin from a forced legal tender to a voluntary payment method. The new rules became effective around May 1, 2025. Businesses no longer face the legal obligation to accept Bitcoin for goods or services. The state also repealed the provision allowing tax payments in Bitcoin. All tax obligations must now settle in US dollars. The government removed the state obligation to provide automatic and instant convertibility of Bitcoin to US dollars. This change repealed Articles 4, 8, and 9 of the original law. The transfer of majority control of the Chivo wallet to a private operator reduced direct government exposure to digital asset management risks. The IMF required the phase-out of the state’s participation in the Chivo wallet by the end of July 2025. The legal architecture that forced merchants to accept the cryptocurrency has been dismantled. Most analysts treat Bitcoin as voluntary tender rather than a second official currency. The US dollar remains the dominant day-to-day currency for wages, prices, and tax payments. Local adoption remains dismal, with only 7.5% of the population using the asset daily.

Asset values and market data

In May 2025, the implied unrealized profit from Bitcoin holdings reached approximately $386 million. This figure used a Bitcoin price of $109,000 per coin. The reserve at that time contained 6,189.18 BTC. That increase represented a 132 percent gain since initial purchases began in mid-2021. The government maintains its Bitcoin Office, which President Nayib Bukele established in 2022. This office manages the country’s digital asset initiatives. President Bukele pledged to purchase one Bitcoin every day until fiat currencies became impractical. Daily deposits into the national treasury continue despite international expectations. These additions may come from unidentified private donors, creating questions around the financial structure behind the additions.

The current Bitcoin price sits at $63,384. The government continues to add dozens of BTC to its coffers even though the IMF requires that the total amount of Bitcoin held across all government-owned wallets remains unchanged to ensure the country maintains its fiscal stability. This accumulation persists through unidentified private donors. While the market fluctuates, the position shows a clear win. The gap between the acquisition price and current value adds up quickly.

Volcanic energy and digital infrastructure

El Salvador uses volcanic heat to power its digital ambitions. Machines hum near the Tecapa volcano where steam rises. Public accounts hold 474 Bitcoins from these operations. Officials opened access to outside firms that want power. These firms pay upfront fees to use the energy. The nation draws tech talent to San Salvador. The government provides zero income tax for artificial intelligence companies that move their computing hubs to the country. Skilled workers arrive to shape new methods where raw nature fuels digital progress. The government works alongside xAI to bring artificial intelligence tutors into schools. This program, backed by Elon Musk’s team, aims to bypass long-standing classroom limits. One hundred thousand young people in El Salvador will receive schooling and hands-on practice in tech skills like Python programming, managing Bitcoin networks, and building artificial intelligence systems. You know the US dollar remains the settlement layer for the state. What is the final destination for the Bitcoin Office?