One-Two: IMF Reiterates That El Salvador Is Just Shuffling Bitcoin

At a recent press briefing, the IMF reiterated that the number of bitcoins accumulated in the wallets of El Salvador had not changed and that the increases in the country’s bitcoin reserve fund were due to token shuffling across multiple addresses.

IMF Denies El Salvador’s Alleged Bitcoin Purchases in Press Briefing

The alleged bitcoin purchases by El Salvador are again in the spotlight following new statements made by International Monetary Fund (IMF) authorities. At a press briefing held on July 24, the IMF indirectly called out President Nayib Bukele and the National Bitcoin Office (ONBTC) of El Salvador, reiterating that the bitcoin held by the country had not increased since the $1.4 billion credit agreement was inked by the two parties.

During the briefing, one of the journalists directly confronted Julie Kozack, Director of the Communications Department of the IMF, on the issue, stating that the status of these alleged bitcoin purchases was still unclear.

“The government says they’re still buying Bitcoin, and it seems that the IMF is saying they are just moving things around between wallets. And I wanted you to address that,” Inner City Press’ Matthew Lee asked.

Kozack stated that, while the performance of the country has been strong and macroeconomic imbalances are being addressed, the risks from bitcoin “continue to be mitigated.”

She reiterated that, in opposition to the claims of Salvadoran authorities, who have allegedly continued bitcoin acquisitions in defiance of program conditionality, the total amount of bitcoin held across government-owned wallets remains unchanged.

Expanding on the issue, she explained:

The accumulation of Bitcoin by the Strategic Bitcoin Reserve Fund is consistent with program conditionality. And the increases in the Bitcoin Reserve Fund relate to movements across various government-owned wallets.

Kozack’s statements echo what the compliance report of El Salvador’s program performance revealed, clarifying that the so-called bitcoin purchases were movements between several government-managed bitcoin wallets.

Nonetheless, the National Bitcoin Office of El Salvador has continued to report these additions as purchases, claiming that its strategic bitcoin reserve holds 6,250.18 BTC at the time of writing.

Read more: IMF Bombshell Footnote Solves El Salvador’s Bitcoin Accumulation Mystery