El Salvador's $1.4 billion IMF deal highlights the country's severe economic issues, with public debt reaching 87% of GDP and extreme poverty nearly doubling since 2019. Despite promises of an economic boom through Bitcoin adoption, GDP growth remains stagnant and debt continues to rise.

El Salvador has purchased over $100 million in Bitcoin, increasing its holdings despite a commitment to the IMF to limit exposure to the asset. This move raises questions about compliance with loan terms, as the government previously claimed it had not acquired any new Bitcoin since 2024. The IMF noted that El Salvador's reported Bitcoin reserves might not reflect actual holdings due to discrepancies.

El Salvador has decided to distribute its Bitcoin holdings across multiple wallets to enhance security and manage risks effectively. This move comes as part of the government's ongoing strategy to integrate cryptocurrency into its national economy while addressing concerns about potential vulnerabilities associated with holding large amounts of Bitcoin in a single wallet.

El Salvador's finance officials reveal the country hasn't acquired Bitcoin since February 2025, contradicting President Bukele's previous claims of daily purchases. The IMF report clarifies that increases in Bitcoin reserves are due to consolidation from existing government wallets, not new acquisitions. Bukele continues to assert that Bitcoin purchases will persist despite IMF agreements.