The International Monetary Fund (IMF) announced that it has reached an agreement with the government of El Salvador to pay the country $120 million following an initial review of a $1.4 billion loan agreement reached last year, which limited its involvement with Bitcoin.
The IMF on May 27 said that the country must end all participation in the digital asset Chivo by the end of July, in line with its previous commitment to control the government's role in the country's cryptocurrency ecosystem.
In its statement, the effort is to ensure that the total amount of holdings in all government-owned wallets remains unchanged.
The implementation of this condition is subject to approval by the IMF Executive Board as part of the process of further disbursement of funds under the loan agreement.
On March 3, the IMF reiterated its position that El Salvador should stop collecting Bitcoin and not continue other Bitcoin-related activities.
However, shortly after the conditions were imposed, El Salvador's Bitcoin office defied the agreement by posting a report on the social media site X that they were once again buying more Bitcoin.
Data from the country’s official Bitcoin tracker shows that El Salvador has continued to purchase the digital asset through the Bitcoin Office, with 30 BTC collected in the past 30 days.
To date, El Salvador’s total Bitcoin reserves have reached 6,190.18 BTC, further cementing the country’s position as one of the largest institutional Bitcoin holders globally.
