The amount of Bitcoin (BTC) held by El Salvador on behalf of the state rose despite the IMF program’s requirement to keep the public balance stable. According to documents provided by Salvadoran authorities, the source of the increase was private donations. No new accumulation is expected outside of the documented donations.

The balance seen in the country’s official tracking system reached 7,764.37 BTC. The IMF’s initial review stipulated that the government should not violate the requirement to keep the public balance stable by purchasing Bitcoin from its own budget. The donation explanation revealed how the increase in the balance aligns with this rule.

IMF limit on El Salvador’s Bitcoin accumulation

In the new period, the amount of Bitcoin to be held on behalf of the state is not expected to increase through new purchases from the public budget. Thus, while the source of the increased balance was explained, it was stated that future growth will also be limited to documented donations.

The identities of the donors and the contribution amounts were not disclosed. El Salvador’s President Nayib Bukele had previously stated that the country would not stop its Bitcoin purchases.

The announcement came after El Salvador and IMF staff reached a staff-level agreement for the second and third reviews of the credit program. The parties also agreed on auditing public Bitcoin holdings and strengthening the legal framework for the cryptocurrency sector under the 40-month financing program.

El Salvador became the first country to adopt Bitcoin as legal tender in 2021. However, with the IMF agreement, Bitcoin acceptance in the private sector was made voluntary, a requirement was introduced to pay taxes in dollars, and limits were placed on the public sector’s Bitcoin purchases.

El Salvador’s Bitcoin Balance Reaches 7,764 BTC: Increase Did Not Come From Public Budget isimli makale Selim Kuşçu tarafından hazırlanmış ve koinbulteni.comda yayınlanmıştır.