El Salvador's Bitcoin Reserve Growth Comes from Private Donations, Not Government Spending

The El Salvador government's Bitcoin reserve has seen significant growth over the past year, but according to the International Monetary Fund (IMF), it was not fueled by new government spending. In its latest review of El Salvador's loan program, the IMF revealed that the country's increased BTC holdings since the previous review came from private donations.

The IMF stated that documents provided by El Salvador showed that the accumulated Bitcoin reflected these private contributions, with no public resources being used. The Fund also reiterated that earlier changes in El Salvador's BTC position did not necessarily represent new buying.

The IMF noted that El Salvador had 'substantially unwound' its stakes in the Chivo e-wallet, transferring majority ownership and operational control to a private operator while retaining a minority stake and custodial responsibilities for customer assets. This comes amidst the country's continued pro-Bitcoin messaging and growing reserve.