El Salvador once again violates IMF regulations by purchasing new Bitcoin after loan review

According to Decrypt, the Bitcoin Office of El Salvador announced on Tuesday an increase in holdings of 8 bitcoins, bringing the country's reserves to nearly 6200 (worth approximately $674 million). This move occurred hours after the International Monetary Fund (IMF) completed its first round review of the country's $1.4 billion loan plan. The IMF has requested El Salvador to halt its government's increase in cryptocurrency holdings during its review, and has set a deadline of July for the closure of the state-owned cryptocurrency wallet Chivo. But the country utilizes the institutional design of the Bitcoin office, which is not part of the finance department, to continue making small daily purchases. President Bukkel has previously lifted the mandatory status of Bitcoin as a legal tender, but still maintains its optional currency attribute. The approval of this review will enable El Salvador to obtain an additional $2 billion in development bank financing to help address its public debt, which accounts for 85% of GDP. Rodrigo Valdes, Director of the Western Hemisphere Department of the IMF, stated in April that El Salvador's "financial sector has generally adhered to its commitment not to increase its holdings of Bitcoin".