El Salvador’s Bitcoin Strategy Faces Doubts Amid IMF Pressure and Mixed Signals

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El Salvador’s Bitcoin journey is facing fresh doubts. The government says it’s still buying BTC every day, but the IMF disagrees. This raises questions about how much Bitcoin is really helping and if the country’s original crypto vision is starting to fade.

Locals Still Use BTC in Berlin

In the mountain town of Berlin, El Salvador, locals are using Bitcoin daily, trading goods like coffee and benefiting from its rising price. El Salvador made Bitcoin legal tender in 2021, but under a 2024 IMF deal, its use became optional and limited for government use. 

Is Bitcoin Policy Helping The People?

El Salvador’s Bitcoin strategy is facing new challenges, says Quentin Ehrenmann of NGO My First Bitcoin. He told Reuters that after the IMF deal, Bitcoin lost its legal tender status, and the government stopped pushing public education or adoption efforts. While the government keeps adding to its Bitcoin reserves, he argues that this benefits the state more than everyday people.

For more than two years in a small district in the eastern part of El Salvador, Bitcoin enthusiasts have created a learning center and provided technical support to owners of about 200 businesses and entrepreneurs on using the cryptocurrency pic.twitter.com/S2bJ4YOYCf

— Reuters (@Reuters) July 25, 2025 Government Says ‘We’re Still Buying’, IMF Disagrees

The government holds over 6,249 BTC worth over $738M, but a 2024 survey showed 80% of Salvadorans feel Bitcoin has not improved their finances. El Salvador agreed not to buy more Bitcoin under its IMF deal, according to a recent report. This clashes with statements from the country’s own Bitcoin Office, which claims BTC is still being bought daily.

The country’s Bitcoin Office confirmed on July 24 that it bought 8 more BTC worth about $948,000. But, a recent IMF statement claims that the country has not made any purchases.

EL SALVADOR JUST BOUGHT MORE BITCOIN