El Salvador’s Bitcoin U-turn: no new purchases since Dec 2024, IMF report reveals
2025-07-19 09:05:01
Main Idea
El Salvador has halted Bitcoin purchases since December 2024 and is scaling back its Bitcoin adoption initiatives due to fiscal pressures and IMF bailout terms, including the privatization of Chivo Wallet and potential dissolution of Fidebitcoin.
Key Points
1. El Salvador stopped acquiring Bitcoin since December 2024, coinciding with its $1.4 billion IMF bailout agreement in early 2025.
2. The state-sponsored Chivo Wallet is set to be privatized by the end of July 2025, signaling a shift away from Bitcoin adoption.
3. Speculation arises over the possible dissolution of Fidebitcoin, the government-run Bitcoin trust.
4. The IMF's bailout terms included strict limits on Bitcoin-related activities, leading to a reversal of El Salvador's earlier Bitcoin strategy.
5. Despite initial popularity, economic realities and fiscal stability concerns have forced El Salvador to deprioritize Bitcoin.
Description
El Salvador, once hailed as the global trailblazer for national Bitcoin adoption, is quietly shifting gears. After making headlines in 2021 for becoming the first country to embrace Bitcoin as legal tender, recent disclosures point to a dramatic slowdown. A new report by the International Monetary Fund (IMF), released on 15 July 2025, reveals that
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