IMF Calls for El Salvador to Exit Bitcoin Holdings; Stacy Herbert Defies Policy Directive

The International Monetary Fund (IMF) has intensified pressure on El Salvador to unwind its government-backed Bitcoin strategy, particularly regarding the Chivo e-wallet project. In its latest review of the country’s 40-month extended funding arrangement, the IMF explicitly stated that negotiations surrounding the potential sale of Chivo and related Bitcoin initiatives are progressing favorably. The fund emphasized that these measures are crucial for enhancing fiscal transparency and reducing exposure to cryptocurrency volatility in the public sector.

IMF Signals Decisive Policy Reorientation

The IMF’s second comprehensive review underscores a fundamental shift in the international financial institution’s stance on El Salvador’s Bitcoin experiment. Beyond negotiations on Chivo’s future, the fund highlighted robust macroeconomic indicators: GDP growth is projected to reach approximately 4% for the year, while fiscal consolidation efforts remain on track. The 2026 budget framework, in the IMF’s assessment, demonstrates a genuine commitment to deficit reduction coupled with enhanced social security provisions. Notably, the fund has explicitly requested that El Salvador’s public sector cease all voluntary Bitcoin purchases and systematically reduce its involvement with the Chivo platform.

Stacy Herbert and the Bitcoin Office Challenge IMF Authority

Despite these formal directives, significant friction has emerged between IMF prescriptions and on-the-ground implementation. Stacy Herbert, a prominent Bitcoin advocate and key figure within El Salvador’s Bitcoin Office, has become the public face of continued Bitcoin accumulation. Official government channels claim no additional purchases have transpired; however, both Stacy Herbert and the Bitcoin Office have consistently maintained that acquisitions continue at an accelerated pace—specifically, approximately one Bitcoin per day. This purported buying spree has allegedly driven El Salvador’s total BTC holdings to 7,509 coins as of late December 2025.

The Growing Credibility Gap

The discrepancy between official statements and the rhetoric emanating from Stacy Herbert and his associates represents a significant policy contradiction. While the government ostensibly aligns with IMF requirements to suspend Bitcoin purchases, evidence suggests an alternative narrative is unfolding. The persistence of these contradictory messages raises questions about governmental coherence and the actual implementation of IMF-negotiated arrangements. This standoff highlights the tension between international financial oversight and a nation’s determination to maintain its controversial Bitcoin-centric strategy.