El Salvador’s national bitcoin reserve has grown to 7,762 BTC, worth approximately $598 million, even as the government faces ongoing pressure from the International Monetary Fund to stop accumulating the cryptocurrency.
The Central American nation’s Bitcoin Office confirmed the latest figure this week, bringing the total to the highest level since the country began its strategic purchasing program in 2021. Holdings have climbed steadily from 5,968 BTC in December 2024, when the IMF loan program was formalized, adding nearly 1,800 coins in less than nine months.
The purchases directly contradict a letter of intent in which El Salvador’s central bank and finance ministry pledged to limit bitcoin acquisitions as a condition of the $1.4 billion IMF loan. The agreement was designed to reduce fiscal risk from the country’s volatile crypto holdings. Instead, the government has continued buying through regular, modest purchases, often adding small amounts of BTC at market dips.
Rank fifth among sovereign holders
El Salvador now ranks as the fifth-largest sovereign holder of bitcoin globally, behind the United States, China, the United Kingdom, and Ukraine, according to data from BitcoinTreasuries. The country’s 7,762 BTC represent roughly 12% of its $5.1 billion in net international reserves, a concentration that has drawn scrutiny from international financial institutions.
At current prices near $77,500, the reserve is worth approximately $601 million. When the IMF agreement was signed in late 2024, the same holdings were worth considerably more, meaning the paper gains have shifted with market conditions. During February’s drawdown, the reserve lost roughly $300 million in value on paper, briefly complicating IMF negotiations and raising concerns among bond investors.
The IMF has not publicly escalated its objections since the December 2024 agreement, but the gap between El Salvador’s stated commitments and its actual behavior has not gone unnoticed within the institution. Staff-level reviews of the loan program have continued, with the most recent update praising El Salvador’s 4% GDP growth and noting progress in fiscal management, while sidestepping the bitcoin purchasing question entirely.
Economic growth masks the tension
The disconnect between IMF rhetoric and El Salvador’s actions is partly explained by the country’s strong economic performance. GDP growth hit 4% in 2025, driven by improved investor confidence, record remittance flows, and what the IMF described as a “very good” 2026 outlook. President Nayib Bukele has used this performance to argue that bitcoin adoption has been an economic net positive for the country, pointing to tourism revenue, foreign investment, and a growing fintech sector.
Remittances from Salvadorans working abroad, which make up roughly a quarter of GDP, have increasingly flowed through the government’s Chivo wallet, reducing transfer fees for families who previously paid 5% or more to traditional remittance services. The government has also promoted its “Bitcoin bonds” program and attracted crypto startups to the country with favorable regulatory terms, including a dedicated digital assets commission.
But critics argue that the economic growth would have occurred regardless of bitcoin policy, driven by broader regional trends and conventional fiscal reforms. The risk, they say, is that a sharp BTC decline could destabilize El Salvador’s reserves at the worst possible moment, forcing emergency fiscal adjustments or triggering conditions in the IMF loan that would require immediate austerity.
“Close engagement with the Salvadoran authorities is expected to continue in the period ahead”
The IMF’s December 2025 update used carefully calibrated language, praising economic progress while noting that “close engagement with the Salvadoran authorities is expected to continue” on bitcoin-related matters. The language left room for interpretation on both sides. Bukele’s government read it as implicit acceptance of the status quo. IMF officials, speaking off the record, have suggested the review was a tactical pause rather than a concession.
Political calculations in election year
The timing of the purchases adds a political dimension. El Salvador holds legislative elections in early 2027, and Bukele’s party Nuevas Ideas commands a supermajority in the current assembly. The bitcoin policy has become a signature issue for the administration, and abandoning it before elections would hand ammunition to opposition parties that have already accused the government of financial recklessness.
At the same time, midterm elections in the United States in November 2026 could shift the political landscape for El Salvador. A change in U.S. administration priorities could affect aid flows, trade negotiations, and the broader diplomatic framework within which the IMF operates. Bukele has cultivated relationships with both major U.S. parties, and his government’s cooperation on migration and security issues has given him leverage that transcends bitcoin policy.
What comes next
El Salvador’s next scheduled IMF review is expected later this year, and the bitcoin purchasing question will likely come up again. The government shows no sign of slowing down. If anything, the pace of purchases has accelerated slightly since mid-2025, with the Bitcoin Office adding roughly 110 BTC per month on average.
The country’s bonds have performed well in secondary markets, suggesting that investors are not pricing in significant risk from the bitcoin strategy, at least not yet. But the concentration of 12% of reserves in a single volatile asset remains unusual for any sovereign, let alone one dependent on IMF funding.
For the IMF, the challenge is diplomatic. El Salvador is a small economy with outsized political symbolism for the institution. Forcing a confrontation over bitcoin purchases could set a precedent that makes other borrowing countries nervous about policy conditions. For Bukele, the purchases are a signature policy that has defined his presidency on the world stage. Backing down now would carry its own political costs at home.
The most likely scenario is continued ambiguity: El Salvador keeps buying, the IMF keeps noting it in review documents, and neither side pushes the issue to a breaking point. That equilibrium holds as long as bitcoin prices remain stable or climb. A sharp crash would change the calculus for everyone involved.
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