El Salvador President Nayib Bukele on Friday denied that the country had transferred its bitcoin reserves to a private operator as part of a loan agreement with the International Monetary Fund.
Bitcoin has emerged as one of the most closely watched aspects of the $1.4 billion IMF deal, given Bukele’s decision to make the cryptocurrency a central part of his economic agenda.
El Salvador became the first country in the world to adopt bitcoin as legal tender in 2021, putting the cryptocurrency into circulation alongside the U.S. dollar.
As part of negotiations with the IMF, the government removed bitcoin’s legal tender status in January.
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.
