Bukele Denies Transfer of Strategic Bitcoin Reserves to Private Operator
El Salvador President Nayib Bukele denied reports that the country transferred its strategic Bitcoin reserves as part of a loan agreement with the International Monetary Fund (IMF). The decision to adopt Bitcoin as legal tender in 2021 made El Salvador a closely watched player in the cryptocurrency market.
The IMF announced a preliminary deal with El Salvador on Thursday, unlocking $140 million in fresh funding as part of an austerity and reform program. This funding was conditional on changes to the country's handling of Bitcoin purchases, which were previously financed by private donations rather than public funds.
Bukele clarified that only Chivo's shares were transferred, not the Strategic Bitcoin Reserve, contradicting earlier media reports. The IMF stated that no further Bitcoin accumulation beyond documented donations is expected.